Asia report: Weak Chinese data sees markets end mixed

Japan’s Nikkei 225 lost 0.39% as the yen strengthened and traders reacted to the soft Chinese data.

The yen was last 0.26% stronger, recovering late in the day, to JPY 103.94 per $1.

Sony shares were up by 1.3%, however, after the electronics maker took the wraps off the PlayStation VR virtual reality video games product.

Carmakers Suzuki Motor and Toyota were both up, by 2.24% and 0.2% respectively, as investors reacted to Tuesday’s announcement that the pair were investigating a partnership.

“With alliance specifics not yet clear, it is too early to incorporate anything into our earnings forecasts,” noted Nomura research analyst Masataka Kunugimoto on Wednesday.

“That said, we think the alliance bodes well for the medium-term growth prospects of both companies.”

On the mainland, the markets largely brushed off fresh data which showed larger-than-expected declines in dollar-denominated exports in September, alongside a surprise drop in imports.

The Shanghai Composite added 0.09% by the close, to 3,061.35, while the Shenzhen Composite posted a 0.24% gain, recovering from some minor losses earlier.

Exports in China in dollar terms were down almost 10% year-on-year, according to the data, with imports out by 1.9%.

In renminbi, exports declined a more mild 5.6% year-on-year, and imports were up 2.2%.

Hong Kong’s the Hang Seng Index beared the brunt of the Chinese data, losing 1.61% to 23,032.30, while South Korea’s Kospi lost 0.9% to 2,015.44.

Shares in embattled technology giant Samsung were up 1.43% during the session, after the company slashed its third quarter operating profit outlook on Wednesday by 33%.

The conglomerate has come under intense public scrutiny after a batch of its Galaxy Note 7 smartphones were found to be prone to spontaneous explosions, with the replacement batch also suffering the same issues.

Interest rates were held by the Bank of Korea at 1.25% for the fourth month in a row, as the central bank outlined concerns about increasing household debt.

Oil prices were down during Asian trading, with Brent crude last off 0.17% at $51.72 per barrel and West Texas Intermediate losing 0.3% at $50.03.

Australia’s S&P/ASX 200 lost 0.71% to 5,435.50, with the financials and energy subindexes dragging the chain, losing 1.10% and 1.99% respectively.

In New Zealand, the S&P/NZX 50 managed a 0.2% rise to 7,120.05, although flag carrier Air New Zealand lost 4.7% to hit a two-year low as it faced more intense competition and uncertainty.

It was particularly hit by an overnight warning from Cathay Pacific - one of Air New Zealand’s key partners on routes between the Pacific island nation and Europe - over the threat caused by high-capacity Chinese airlines.

The down under dollars were mixed, with the Aussie last 0.24% weaker against the greenback at AUD 1.3256 and the Kiwi strengthening 0.07% to NZD 1.4151 per $1.