Asia report: Alibaba leads Hang Seng as regional bourses rise

Markets were mostly higher at the end of Tuesday’s session in Asia, with Hong Kong’s bourse leading the gains, underpinned by tech heavyweight Alibaba.

In Japan, the Nikkei 225 was up 1.48% at 27,224.11, as the yen weakened 1.19% against the dollar to last trade at JPY 120.89.

Of the major components on the benchmark index, robotics specialist Fanuc was up 2.25%, Uniqlo owner Fast Retailing added 0.73%, and tech investing giant SoftBank Group was 1.91% higher.

The broader Topix index was 1.28% firmer by the end of trading in Tokyo, closing at 1,933.74.

On the mainland, the Shanghai Composite managed gains of 0.19% to 3,259.86, and the smaller, technology-centric Shenzhen Composite slipped 0.41% to 2,151.68.

China Eastern Airlines - one of the ‘big three’ carriers in the People’s Republic - tumbled 6.15% on Shanghai’s bourse after one of its Boeing 737 jets crashed in southern China late on Monday.

South Korea’s Kospi added 0.89% to 2,710.00, while the Hang Seng Index in Hong Kong jumped 3.15% to 21,889.28.

Internet and technology giant Alibaba led the gains in the special administrative region, rocketing 11.2% after it expanded its share repurchase programme to $25bn, from a previous $25bn.

Hong Kong-traded shares in China Eastern Airlines, meanwhile, descended 2.55%.

Seoul’s blue-chip technology stocks were on the front foot, with Samsung Electronics up 0.57%, and SK Hynix rising 1.23%.

“Asian stocks traded higher this morning, while European shares rose after Fed chair Jerome Powell struck a more hawkish tone on monetary policy,” said FXTM senior research analyst Lukman Otunuga of the global situation on Tuesday.

“In the currency arena, king dollar received fresh inspiration amid new rate hike bets as the selloff in bond markets deepened with 10-year Treasury yields hitting 2.34% this morning.

“Oil prices extended gains on Tuesday as EU countries considered banning Russian oil imports in response to the escalating tensions with Ukraine, while gold has displayed resilience against a strong dollar and rising yields, slipping towards $1,930 as of writing.”

Otunuga said investors had “a lot on their plate”, as heightened geopolitical tensions, surging commodity prices, inflation fears and global growth concerns sapped confidence.

“The week ahead promises to be eventful with speeches from various policymakers in focus.

“Overnight, Reserve Bank of Australia governor Philip Lowe said Australia’s economy looks ‘pretty good’ from where he’s standing when questioned by a journalist.

“It is worth keeping in mind that annual inflation in Australia rose to 3.5% in the fourth quarter, which is above the central bank's 2% to 3% target band.”

Oil prices fell through much of the Asian session, and were mixed by the time the region went to bed, with Brent crude futures last up 0.03% on ICE at $115.56 per barrel, while West Texas Intermediate was 0.25% weaker at $109.70.

In Australia, the S&P/ASX 200 was 0.86% higher at 7,341.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.22% to 12,204.69.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.36% at AUD 1.3465, and the Kiwi advancing 0.81% to NZD 1.4403.