Asia report: Technology plays lead markets higher
Markets in Asia finished mostly higher on Tuesday, with technology plays in focus following a rise for the sector on Wall Street overnight.
In Japan, the Nikkei 225 was up 0.67% at 28,553.98, as the yen weakened 0.06% against the dollar to last trade at JPY 108.81.
Of the major components on the benchmark index, robotics specialist Fanuc was up 1.08%, Uniqlo owner Fast Retailing added 0.93%, and technology giant SoftBank Group was ahead 0.54%.
The broader Topix index was 0.34% firmer by the end of trading in Tokyo, closing at 1,919.52.
On the mainland, the Shanghai Composite jumped 2.4% to 3,581.34, and the smaller, technology-heavy Shenzhen Composite added 1.91% to 2,381.93.
South Korea’s Kospi was 0.86% higher at 3,171.32, while the Hang Seng Index in Hong Kong advanced 1.75% to 28,910.86.
Chinese tech firms were mostly higher in the special administrative region, with Alibaba Group up 0.49% and Tencent rising 4.18%.
Smartphone maker Xiaomi gained 4.13%, after FTSE Russell confirmed overnight that it would once again be included in its indices, following Washington’s removal of the firm from an investment blacklist earlier in the month.
Kuaishou Technology, which operates a popular short-format video sharing app in China, plunged 11.46% in Hong Kong, even after it reported a 36.6% improvement in first quarter revenues year-on-year on Monday.
The blue-chip technology stocks were stronger in Seoul, with Samsung Electronics managing gains of 0.25%, and SK Hynix jumping 2.93%.
Sentiment was given a boost early on in the Asian day, after major tech shares bounced in New York overnight, with Alphabet, Facebook and Microsoft all managing gains higher than 2% by the end of the Monday session.
“Inflation is still a major concern among investors and traders while they are also keeping a close eye on cryptocurrencies,” said AvaTrade’s Naeem Aslam.
“If we look at the volatility index, it appears that traders are still favoring its price action as they are not fully sure about the risk-on trade.
“The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose yesterday as big tech regained its footing.”
Oil prices were lower as the region went to bed, with Brent crude last down 0.56% at $68.08 per barrel, and West Texas Intermediate falling 0.73% to $65.57.
In Australia, the S&P/ASX 200 gained 0.98% to 7,115.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was the region’s odd one out, falling 0.87% to 12,341.19.
The down under dollars were both stronger against the greenback, with the Aussie last ahead 0.16% at AUD 1.2877, and the Kiwi advancing 0.22% to NZD 1.3825.