Asia report: Markets mixed ahead of big week for central banks

Stock markets were mixed as they ended their respective sessions in the Asia-Pacific region on Monday, ahead of a busy week globally for central bank watchers.

In Japan, the Nikkei 225 was up 0.71% at 28,640.49, as the yen weakened 0.19% against the dollar to last trade at JPY 113.66.

Of the major components on the benchmark index, automation specialist Fanuc was up 0.87%, fashion firm Fast Retailing jumped 2.59%, and technology giant SoftBank Group rose 0.96%.

The broader Topix index managed gains of 0.13% to end its session in Tokyo at 1,978.13.

On the mainland, the Shanghai Composite rose 0.4% to 3,681.08, and the smaller, technology-heavy Shenzhen Composite was 0.6% firmer at 2,561.91.

South Korea’s Kospi was 0.28% weaker at 3,001.66, while the Hang Seng Index in Hong Kong was 0.17% lower at 23,954.58.

Chinese artificial intelligence firm SenseTime Group was in focus in the special administrative region, after Reuters reported it was cancelling its planned $767m initial public offering in Hong Kong.

The news outlet said the cancellation was on the back of the company’s inclusion on an investment blacklist by the United States, as part of the Biden administration’s latest human rights sanctions on China, Myanmar and North Korea.

Seoul’s blue-chip technology stocks were mixed, with Samsung Electronics down 0.13%, while SK Hynix advanced 0.83%.

Central bank decisions were set to be the theme of the week, with the Bank of England, the Bank of Japan, the European Central Bank and the US Federal Reserve all meeting in the coming days.

The Fed was set to be the most highly-anticipated, with analysts expecting central bankers stateside to increase the tapering of its bond-buying programme to $30bn per month from the current $15bn, in the face of sustained and growing consumer inflation.

“Stocks in Europe have opened mildly higher in fairly subdued early trade on Monday, taking the cue from a broadly positive session in Asia that came off the back of one of the most remarkable turnarounds on Wall Street,” said Markets.com chief market analyst Neil Wilson of the global situation on Monday.

“The S&P 500 closed at a record high on Friday as investors shrugged off a 40-year high for inflation and decided that there probably still is no alternative.

“The 6.8% CPI print saw long dated US Treasury yields jump by the most in some months, but the 10-year remains just below 1.5% and showing little signs of wanting to move out of its recent range.”

Likewise, Wilson said crude prices were steady in the $71 to $73 range, with gold continuing to “chop in a sideways direction” under $1,800 per ounce.

“Bitcoin similarly lacks much direction with the $50k level now acting as resistance.

“There’s also little in the foreign exchange space to get a grip of, with majors largely sticking to tight and well-worn ranges.”

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.2% at $75.30 per barrel, and West Texas Intermediate rising 0.14% to $71.77.

In Australia, the S&P/ASX 200 was ahead 0.35% at 7,379.30, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 1.12% higher at 12,994.19.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.59% at AUD 1.4026, and the Kiwi retreating 0.46% to NZD 1.4766.