Asia report: Chinese tech plays lead stocks higher

Stocks were firmer by the end of trading in Asia on Wednesday, with Chinese technology plays leading the gains.

In Japan, the Nikkei 225 was up 1.08% at 27,579.87, as the yen strengthened 0.07% on the dollar to last trade at JPY 115.47.

Of the major components on the benchmark index, automation specialist Fanuc was up 1.35%, fashion firm Fast Retailing rose 0.92%, and technology conglomerate SoftBank Group jumped 5.85%.

SoftBank’s recovery came after its shares fell on Tuesday, when the company announced it was planning to take British chipmaker Arm public after a sale to American graphics processor giant Nvidia collapsed due to regulatory hurdles.

The broader Topix index was ahead 0.94% by the end of trading in Tokyo, settling at 1,952.22.

On the mainland, the Shanghai Composite rose 0.79% to 3,479.95, and the smaller, technology-heavy Shenzhen Composite gained 1.61% to 2,317,23.

South Korea’s Kospi was 0.81% firmer at 2,768.85, while the Hang Seng Index in Hong Kong jumped 2.06% to 24,829.99.

Chinese tech shares led the gains in the special administrative region, with Alibaba up 6.83%, Netease rising 4.88%, and Tencent Holdings 2.72% firmer.

Seoul’s blue-chip technology stocks were also in the green, with Samsung Electronics up 1.63% and SK Hynix ahead 0.8%.

“European stock markets are extending the upward move after a positive Asian session and following a higher close of US indices despite some general uncertainty seen across markets,” said XTB chief market analyst Walid Koudmani.

“Stock prices have been increasingly volatile on the back of recent geopolitical tensions and some surprising earnings reports released during this earning season.”

Koudmani said fiscal and monetary policy had also greatly impacted investor sentiment, although many participants appeared reassured given the continuation of the recent rebound across markets, while investors awaited key earnings from the likes of Uber and Disney later on Wednesday.

“While it remains to be seen whether these will manage to meet expectations, the situation remains quite fragile with many markets experiencing significant volatility and as several central bankers are also due to speak today.”

Oil prices were lower at the end of the Asian day, with Brent crude last down 0.54% at $90.29 per barrel, and West Texas Intermediate losing 0.66% to $88.77.

In Australia, the S&P/ASX 200 was 1.14% higher at 7,268.30, with the hefty financials index clearing a 2.59% rise in Sydney.

The ‘big four’ banks were all in the green in the sunburnt country, with Australia and New Zealand Banking Group up 1.71%, Commonwealth Bank of Australia rising 5.58%, National Australia Bank ahead 2.38%, and Westpac Banking Corporation 2.43% firmer.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.93% at 12,433.95, led higher by subscription broadcaster Sky Network Television - no relation to its Comcast-owned UK namesake - which was 2.7% firmer.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.45% at AUD 1.3930, and the Kiwi advancing 0.52% at NZD 1.4963.