Asia report: Markets move higher after landmark Korea summit
Markets in Asia finished higher on Monday - the last trading day of April - with investor eyes keenly fixed on a slew of economic data and geopolitical progress in the region.
AUD/USD
$0.6488
01:32 24/04/24
GBP/NZD
NZD2.0979
01:31 24/04/24
Hang Seng
16,828.93
10:21 23/04/24
Nikkei 225
37,552.16
09:44 23/04/24
USD/JPY
¥154.7500
01:31 24/04/24
In Japan, markets were closed for the day, as were those in mainland China.
The yen weakened on the dollar as Tokyo traders enjoyed their day off, last moving 0.28% behind to trade at JPY 109.35.
There was still some economic data released from the People’s Republic, with the official manufacturing purchasing managers’ index coming in at 51.4.
That was above expectations for a reading of 51.3, but below the 51.5 seen in March.
The country’s official services PMI for April was 54.8, rising from 54.6 last month.
South Korea’s Kospi was ahead 0.92% at 2,525.38, while the Hang Seng Index in Hong Kong surged 1.74% to 30,808.45.
Financials and property shares were the leaders of the session in Hong Kong, after banks in mainland China reported growth in net profit on Friday.
Technology plays were mixed in Seoul, while carmakers, oil stocks and steel producers all rose.
Construction firm Hyundai Engineering & Construction rocketed 26.19%, with other names in the building sector also getting a boost.
Railway engineering companies were also higher, as sentiment following the inter-Korea summit between Moon Jae-in and Kim Jong-un, as the possibility of cross-border economic projects grew.
Geopolitical sentiment was rosy during the session, as investors reacted to the inter-Korea summit, in which leaders from both the North and South of the peninsula pledged to work towards peace.
“The devil is in the details - or nuclear disarmament - and economic impact may be slow to follow,” noted Mizuho Bank head of economics and strategy Vishnu Varathan.
Oil prices were lower, with Brent crude last down 0.92% at $73.96, and West Texas Intermediate losing 1.02% to $67.41 per barrel.
In Australia, the S&P/ASX 200 rose 0.49% to 5,982.70, with advances in the hefty financials and utilities subindices offsetting declines in energy and materials.
AMP said its chair Catherine Brenner had resigned on Monday, just days after chief executive Craig Meller did the same.
The resignations came amid an ongoing Royal Commission of Inquiry into the practices of Australia’s banking sector.
Shares in AMP edged 0.5% higher.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.9% to finish at 8,443.58, led higher by energy generator and retailer Mercury, which rose 2.9%.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.52% at AUD 1.3259, and the Kiwi retreating 0.57% to NZD 1.4195.