Asia report: Markets mixed amid confused trading for technology sector
Markets in Asia finished mixed on Tuesday, with technology stocks in the region once again suffering a confused session after another downturn for the sector on Wall Street overnight.
AUD/USD
$0.6573
06:01 08/05/24
GBP/NZD
NZD2.0850
06:01 08/05/24
Hang Seng
18,470.05
10:35 07/05/24
Nikkei 225
38,320.84
09:30 07/05/24
USD/JPY
¥155.1550
06:01 08/05/24
In Japan the Nikkei 225 was up 0.86% at 22,278.12, as the yen weakened 0.21% against the dollar to last trade at JPY 108.94.
The broader Topix index posted ever better gains than the benchmark, rising 1.08% to finish at 1,796.75.
On the mainland, the Shanghai Composite surged 1.97% to 3,128.60, and the smaller, technology-heavy Shenzhen Composite rocketed 2.27% to 1,804.40.
South Korea’s Kospi was off 0.4% at 2,364.14, while the Hang Seng Index in Hong Kong added 1.26% to 30,636.24.
On the technology front, chipmaker SK Hynix watched its shares fall 2.73%, even after the company satiated market expectations with a 77% improvement in first quarter operating profit.
Investors were instead focussed on the company’s admission that it was expecting slower growth in smartphone sales going forward.
Technology giant Samsung Electronics also fell, by 2.77%.
SK Hynix wasn’t the first firm in the region to warn of slowing growth in smartphones, with Taiwan Semiconductor Manufacturing making similar moves earlier.
That itself came after a report from Morgan Stanley in the US over the weekend expressed concern about the possibility of “materially weaker” iPhone sales affecting Apple’s bottom line.
But it was a cocktail of factors leading to the mixed directions in Asian markets on Tuesday, according to some analysts.
OCBC Bank in Singapore put the confused market sentiment in the region down to “higher yields, mixed earnings, still solid US growth data and eased sanctions on Russian aluminum producer Rusal”.
Oil prices were higher as the region went to bed, with Brent crude last up 0.25% at $74.90 per barrel, and West Texas Intermediate ahead 0.36% at $68.89.
In Australia, the S&P/ASX 200 was ahead 0.6% at 5,921.60, with the hefty financials subindex rising a solid 0.99% by end-of-play.
Of the major banks, Australia and New Zealand Banking Group was up 0.87%, Commonwealth Bank of Australia added 1.09%, and both National Australia Bank and Westpac Banking Corporation notched gains of 1.11% each.
Most of the major miners spent their Tuesdays on the downside, however, with Fortescue Metals sliding 2.35% and Rio Tinto down 2.62%.
Sydney-listed shares in BHP Billiton were up, however, reversing earlier losses to finish 0.13% into positive territory.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.2% to settle at 8,288.64, with infant formula and specialty dairy products exporter A2 Milk once again leading the losers in Wellington, falling 3%.
Both A2 and its supplier, Synlait Milk, have seen their stock prices weaken in recent months, since Swiss dairy behemoth Nestle launched a competing infant formula containing the so-called ‘a2’ protein into the Chinese market.
Synlait stock was down 2.6% on Tuesday.
The down under dollars were mixed, with the Aussie last 0.02% stronger on the greenback at AUD 1.3147, while the Kiwi retreated 0.41% to NZD 1.4049.