Asia report: Markets higher as Chinese retailers smash 'Singles Day' records

Markets in Asia finished in a higher state on Friday, with investors monitoring Chinese e-commerce plays after the hugely popular ‘Singles Day’ shopping event.

In Japan, the Nikkei 225 was up 1.13% at 29,609.97, as the yen weakened 0.04% against the dollar to last trade at JPY 114.11.

Fashion firm Fast Retailing was down 0.12%, while among the benchmark’s other major components, automation specialist Fanuc was up 0.7% and technology giant SoftBank Group was 2.58% firmer.

The broader Topix index was 1.31% firmer by the end of trading in Tokyo, closing at 2,040.60.

On the mainland, the Shanghai Composite added 0.18% to 3,539.10, and the smaller, technology-heavy Shenzhen Composite was 0.38% higher at 2,467.16.

South Korea’s Kospi was ahead 1.5% at 2,968.80, while the Hang Seng Index in Hong Kong was up 0.32% at 25,327.97.

Among the Chinese online retailers in the special administrative region, Alibaba slipped 0.49%, while JD.com jumped 5.17%.

Those moves came after both companies set new sales records on the ‘Singles Day’ shopping-centric fabricated holiday.

The blue-chip technology stocks were going different ways in Seoul, with Samsung Electronics up 1%, while SK Hynix lost 0.93%.

“A strong Asia session saw Chinese markets rally after record sales in their own version of Black Friday, called Singles Day,” said CMC Markets chief market analyst Michael Hewson.

“This week’s events, particularly around inflation are fomenting increasing discussion as to whether central banks might have to shift their policy stance to reflect that the price rises currently being seen could only just be the beginning of what consumers are about to bear as we head towards 2022.

“For months they have been assuring the markets that inflation is transitory, only for them to then have to shift their CPI forecasts higher with each passing meeting.”

Oil prices were lower as the region entered the weekend, with Brent crude last down 1.53% at $81.60 per barrel, and West Texas Intermediate losing 1.74% to $80.17.

In Australia, the S&P/ASX 200 was 0.83% firmer at 7,443.00, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was the region’s odd one out, falling 0.91% to 12,908.15.

The down under dollars were mixed against the greenback, with the Aussie last 0.05% stronger at AUD 1.3704, while the Kiwi weakened 0.15% to NZD 1.4264.