Asia report: Markets higher as UN sanctions hit Pyongyang
Asian markets were higher on Monday, as investors had a chance to react to better-than-expected jobs data out of the US on Friday, and as tensions were still high around the situation on the Korean Peninsula.
AUD/USD
$0.6416
23:00 19/04/24
GBP/NZD
NZD2.1007
23:53 19/04/24
Hang Seng
16,224.14
10:21 19/04/24
Nikkei 225
37,068.35
09:44 19/04/24
USD/JPY
¥154.6345
23:58 19/04/24
Japan’s Nikkei 225 was up 0.52% at 20,055.89, as the yen weakened 0.12% to JPY 110.82.
Toyota was ahead 1.98% after it released its first-quarter earnings for the 2018 financial year on Friday.
It revised its forecasts, saying it now expected full-year operating income of JPY 1.85trn, up from its previous forecast for JPY 1.6trn.
The country’s other major exporters were also higher, with Mitsubishi Electric up 0.64% and Nissan 0.51% firmer.
SoftBank Group was up 2.38% after it reported an operating income up 50.1% in its first quarter at JPY 479.2bn.
Technology conglomerate Toshiba rocketed 5.86%, amid media reports that the ailing firm’s auditor would finally sign off its delayed financial results for the year ended March.
On the mainland, the Shanghai Composite was up 0.54% at 3,279.54, and the smaller, technology-heavy Shenzhen Composite was 0.74% higher at 1,872.28.
South Korea’s Kospi was up 0.14% at 2,398.75, and the Hang Seng Index in Hong Kong was 0.46% firmer at 27,690.36.
On the Korean Peninsula, the United Nations Security Council was unanimous in its imposition of new sanctions against Pyongyang on Saturday, after North Korea launched tests of intercontinental ballistic missiles in July.
The sanctions could reportedly slash the belligerent state’s annual $3bn export revenue by a third, although a number of analysts and experts were doubtful the sanctions would deter Kim Jong Un from his nuclear plans.
Stateside, the Dow Jones Industrial Average finished at a record high on Friday, after the Labor Department reported that the American economy added 209,000 jobs in July, well ahead of expectations for a 183,000 gain.
“[The Fed will be] comforted by the continued strength in the labor markets, and by firming inflation figures, so we think its policy normalization plan will remain on track,” noted BlackRock chief investment officer of global fixed income, Rick Rieder.
Oil prices were down during Asian trading, with Brent crude last down 1.78% to $51.81 per barrel, and West Texas Intermediate off 1.25% at $48.97.
In Australia, the S&P/ASX 200 was ahead 0.93% ahead at 5,773.56, led higher by the weighty financials subindex added 0.98% and the energy and materials sectors were 1.48% and 1.49% higher.
The major miners were higher, with BHP Billiton up 1.71%, Fortescue Metals 2.8% higher and Rio Tinto finishing up 1.7%.
One of the region’s major banks, Commonwealth Bank, finished 0.99% higher after it was accused of thousands of breaches of anti-money laundering regulation by the Australian Transaction Reports and Analysis Centre last week.
The bank said a “coding error” was responsible for the “vast majority” of the breaches, adding that it intended to defend the allegations.
Australia’s other major banks were also higher, with Australia and New Zealand Banking Group up 1.05%, National Australia Bank rising 0.84% and Westpac 1.27% firmer.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.3% at 7,771.57, led higher by dairy products and infant food exporter A2 Milk, which shot up 3% to reach its second consecutive record price.
The company released a statement along with with independent New Zealand milk producer Synlait, saying the two firms were “confident” with their application to export ‘A2 Platinum’ infant formula to China from January of next year.
That particular product currently accounted for 8% for the company’s total infant food sales.
The down under dollars were both weaker, with the Aussie last off 0.14% at AUD 1.2632, and the Kiwi softening 0.68% to NZD 1.3578.