Asia report: Markets firmer on another quiet day for region

Equity markets were higher on another quiet day for the Asia-Pacific region on Wednesday, as the Lunar New Year holiday rolled on in a number of countries.

Bourses in mainland China, Hong Kong and South Korea remained closed for the Lunar New Year, which is the primary holiday season on the calendar in much of East Asia.

In Japan, the Nikkei 225 was up 1.68% at 27,533.60, as the yen strengthened 0.27% on the dollar to last trade at JPY 114.40.

Fashion firm Fast Retailing was weaker again, losing 0.65%, while among the benchmark’s other major components, automation specialist Fanuc was up 0.46% and technology giant SoftBank Group was 2.64% firmer.

The broader Topix index was 2.14% firmer by the end of trading in Tokyo, settling at 1,936.56.

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.09% at $89.24 per barrel, and West Texas Intermediate rising 0.24% to $88.41.

In Australia, the S&P/ASX 200 was up 1.17% at 7,087.70, one day after the country’s central bank surprised markets by holding its cash rate target at 0.1%.

In a speech late on Wednesday, Reserve Bank of Australia governor Philip Lowe said its decision to end its bond buying programme did not necessarily mean an interest rate hike was on the horizon.

“I recognise that in a number of other countries the ending of the bond purchase programme has been followed closely, or is expected to be followed closely, by an increase in the policy rate,” he said.

“Our lower rate of inflation and low wages growth are key reasons we don’t need to move in lock step with others.”

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 1.91% to 12,289.64, with shipping conglomerate Mainfreight jumping 6%.

That came on the back of an 85% improvement in pre-tax profit, with Mainfreight putting the growth down to increasing cargo volumes in its trading update.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.31% at AUD 1.3984, and the Kiwi advancing 0.09% to NZD 1.5048.