Asia report: Markets higher as investors look to Trump Iran decision
Markets in Asia finished mostly higher on Tuesday as oil prices fell, with many market watchers keeping their eyes on Washington ahead of an expected announcement from Donald Trump over the Iran nuclear deal.
AUD/USD
$0.6540
09:50 26/04/24
GBP/NZD
NZD2.0982
09:50 26/04/24
Hang Seng
17,641.91
10:21 25/04/24
Nikkei 225
37,934.76
09:43 25/04/24
USD/JPY
¥156.7000
09:50 26/04/24
In Japan, the Nikkei 225 was up 0.18% at 22,508.69 after reversing earlier losses, as the yen strengthened 0.02% against the dollar to last trade at JPY 109.07.
The broader Topix managed gains of 0.37% in Tokyo, with the financials and technology sectors leading gains.
Miners and oil plays were on the back foot, however, falling 1.41% and 1.33% respectively.
On the mainland, the Shanghai Composite was up 0.8% at 3,161.60, and the smaller, technology-heavy Shenzhen Composite was 0.77% firmer at 1,836.22.
Fresh trade data out of Beijing pleased investors, with the April figures topping expectations.
Imports were ahead 21.5% year-on-year and exports rost 12.9% - beating expectations for 16% and 6.3% respectively.
South Korea’s Kospi was down 0.47% at 2,449.81, while the Hang Seng Index in Hong Kong surged 1.36% to 30,402.81.
The blue-chip technology heavyweights in Seoul followed their American peers higher, with Samsung Electronics up 1.35% and SK Hynix adding 0.6%.
Oil prices were lower, with Brent crude last down 0.95% at $75.45 per barrel and West Texas Intermediate losing 1.06% to $69.99.
The lower oil prices came after a tweet from US president Donald Trump on Monday, when he said he would announce his decision on the Iran nuclear deal on Tuesday afternoon US time.
Prices had risen on Monday, as investors considered what fresh US sanctions on Iran could do to the price of the thick black stuff.
“We'd reckon there's still several dollars in the price based on a presumption the US will pull out [of the nuclear deal],” noted National Australia Bank foreign exchange strategist Ray Attrill.
“So if Trump says he's staying, we could swiftly see another $2 to $3 off crude prices.”
In Australia, the S&P/ASX 200 eked out gains of 0.12% to settle at 6,091.90, with the hefty financials subindex rising 0.82% and offsetting losses for energy and materials.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.1% above the waterline, as investors mulled the ramifications of the upcoming MSCI index review.
Expectations are that ailing construction conglomerate Fletcher Building will be dropped, while booming infant food and dairy products exporter A2 Milk will take its place.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.86% at AUD 1.3419 and the Kiwi losing 0.6% to NZD 1.4340.