Asia report: Markets mixed, SoftBank surges on buyback announcement

Equity markets were mixed in Asia on Tuesday, with Japanese technology investment behemoth SoftBank rocketing after it announced a massive share buyback.

In Japan, the Nikkei 225 was down 0.75% at 29,285.46, as the yen strengthened 0.31% against the dollar to last change hands at JPY 112.88.

Of the major components on the benchmark index, robotics specialist Fanuc was down 2.1% and Uniqlo owner Fast Retailing lost 3.16%, while technology giant SoftBank Group surged 10.5%.

Those moves for SoftBank came after it announced plans to buy up to JPY 10.4trn worth of its shares back.

It had announced a quarterly loss of JPY 398bn for the three months through September on Monday.

The broader Topix index was 0.81% weaker by the end of trading in Tokyo, settling at 2,018.77.

On the mainland, the Shanghai Composite was ahead 0.24% at 3,507.00, and the smaller, technology-centric Shenzhen Composite was 0.76% firmer at 2,436.24.

South Korea’s Kospi eked out gains of 0.08% by the end of the day to 2,962.46, while the Hang Seng Index in Hong Kong was 0.2% firmer at 24,813.13.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.14% and SK Hynix rising 1.4%.

“Earnings growth and GDP expansion are both expected to slow next year, which helps to explain the cautious tone of many strategists after a year of incredible performance for some equity indices,” said IG chief market analyst Chris Beauchamp of the global situation on Tuesday morning.

“With little in the way of news to drive indices this morning we have seen little movement overall, and with strong gains having been registered in the past six weeks there is a growing possibility that some kind of mid-month weakness will appear to spook investors.

“Historically, however, late November and then December are positive periods for stock markets, keeping the hope of a last push higher into year-end firmly alive.”

Oil prices were higher as the region went to bed, with Brent crude last up 0.44% at $83.80 per barrel, and West Texas Intermediate rising 0.49% to $82.33.

In Australia, the S&P/ASX 200 lost 0.24% to 7,434.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.38% higher at 13,090.58.

The down under dollars were going both ways against the greenback, with the Aussie last 0.01% stronger at AUD 1.3469, while the Kiwi retreated 0.15% to last trade at NZD 1.3973.