Asia report: Stocks mixed as Aussie inflation picks up steam
Stock markets in Asia closed mixed on Wednesday, as the latest inflation data out of Australia showed prices rising in the second quarter.
In Japan, the Nikkei 225 was up 0.22% at 27,715.75, as the yen strengthened 0.18% on the dollar to last trade at JPY 136.67.
Fashion firm Fast Retailing dropped 1.42%, while automation specialist Fanuc rose 0.09% and technology conglomerate SoftBank Group added 0.12%.
The broader Topix index was 0.13% firmer by the end of trading in Tokyo, settling at 1,945.75.
On the mainland, the Shanghai Composite was down 0.05% at 3,275.76, and the technology-heavy Shenzhen Component was 0.07% weaker at 12,399.69.
South Korea’s Kospi gained 0.11% to 2,415.53, while the Hang Seng Index in Hong Kong slid 1.13% to 20,760.04.
Property plays dragged on the broader index in the special administrative region, with the Hang Seng Mainland Properties Index tumbling 6.29% by the end of trading.
The moves came after Country Garden announced it was raising HKD 2.8bn through the sale of 870 million new shares at a 12.63% discount to their closing price on Tuesday.
Country Garden ended the session down 15.05% on Wednesday.
Seoul’s blue-chip technology stocks were mixed at the close, with Samsung Electronics up 0.16%, while SK Hynix was down 0.5%.
Chipmaker SK Hynix reported a 56% year-on-year surge in second quarter operating profit on Wednesday, to KRW 4.2trn, which its board put down to a “continued rise of the US dollar”.
Oil prices were higher at the end of the Asian day, with Brent crude last up 1.02% on ICE at $105.46 per barrel, and West Texas Intermediate ahead 1.14% at $96.06 on NYMEX.
In Australia, the S&P/ASX 200 added 0.23% to 6,823.30, as fresh data showed consumer prices jumping 6.1% year-on-year in the second quarter, hastening from the 5.1% rise in the first three months of the year.
The figure was still slightly weaker than the 6.2% pencilled in by economists in a Reuters poll.
“The headline measure has come in weaker than consensus,” said analysts at RaboResearch.
“This has seen a decline in rate hike pricing for the Reserve Bank of Australia’s upcoming monetary policy meeting - which takes place next Tuesday - from 57 basis points to 49 basis points.”
Across the Tasman Sea, New Zealand’s S&P/NZX 50 dropped 0.28% to 11,135.03, led lower by fast food group Restaurant Brands, which plunged 9.4%.
The company, which operates KFC, Pizza Hut, Carl’s Jr. and Taco Bell franchises in New Zealand, Australia and parts of the United States, warned of weaker first-half profits amid rising costs.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.21% at AUD 1.4380, and the Kiwi advancing 0.03% to NZD 1.6036.
Reporting by Josh White at Sharecast.com.