Asia report: Markets mixed as investors watch second wave build

Markets in Asia finished in a mixed state on Wednesday, as investors mulled the impacts of falling oil prices, a rise in inflation in Australia, and the continuing rise in Covid-19 cases in the United States.

In Japan, the Nikkei 225 was down 0.29% at 23,418.51, as the yen strengthened 0.24% against the dollar to last trade at JPY 104.17.

Automation specialist Fanuc was down 0.75%, while among the benchmark’s other major components, fashion firm Fast Retailing rose 0.79% and technology giant SoftBank Group advanced 1.33%.

The broader Topix index was off 0.31% by the end of trading in Tokyo, settling at 1,612.55.

On the mainland, the Shanghai Composite rose 0.46% to 3,269.24, and the smaller, technology-heavy Shenzhen Composite added 0.68% to 2,239.11.

South Korea’s Kospi was ahead 0.62% at 2,345.26, while the Hang Seng Index in Hong Kong was 0.32% weaker at 24,708.80.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 1.34%, while SK Hynix gained 0.36%.

Investors were keeping a watchful eye on the ongoing rise in coronavirus cases in the US during the session, after the country set a new daily record number of cases on Monday, at 69,967.

At the same time, the states of Montana, North Carolina, South Dakota, Tennessee and Wyoming all recorded new highs of average daily deaths.

“Any prospect that we might see some form of turnaround Tuesday yesterday proved to be fairly short-lived as markets in the US and Europe fell for the second day in a row,” said CMC Markets chief market analyst Michael Hewson.

“The only exception was the Nasdaq which ended the day higher as tech stocks attracted some haven flows.

“It is becoming increasingly apparent that rising infection rates across Europe are now translating into a rise in hospitalisations, as well as a rising death count with both the UK and France posting their highest fatality levels since May as the second coronavirus wave continued to spread across Europe.”

Oil prices continued to slide at the end of the Asian day, with Brent crude last down 3.13% at $39.91 per barrel, and West Texas Intermediate off 3.92% at $38.02.

In Australia, the S&P/ASX 200 managed gains of 0.11% to 6,057.70, as fresh data out of Canberra showed the country’s consumer price index rising 1.6% quarter-on-quarter for the three months through September.

That followed what the Australian Bureau of Statistics called a “record fall” of 1.9% in the June quarter.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.1% firmer at 12,264.52, as medical technology exporter Fisher & Paykel Healthcare jumped 3.9%.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.48% at AUD 1.4096, and the Kiwi retreating 0.58% to NZD 1.4995.