Asia report: Markets mostly higher as Covid-19 surges in India

Markets in Asia were mostly higher as they closed on Friday, with Japan’s bourse being the prominent exception, as the coronavirus crisis continued to explode in India.

In Japan, the Nikkei 225 was down 0.57% at 29,020.63, as the yen strengthened 0.07% against the dollar to last trade at JPY 107.89.

Of the major components on the benchmark index, automation specialist Fanuc was down 3.05%, fashion firm Fast Retailing lost 0.38%, and technology conglomerate SoftBank Group was off 0.94%.

The broader Topix index lost 0.39% by the end of trading in Tokyo, closing at 1,914.98.

On the mainland, the Shanghai Composite managed gains of 0.26% at 3,474.17, as the smaller, technology-heavy Shenzhen Composite advanced 0.45% to 2,298.55.

South Korea’s Kospi was 0.27% firmer at 3,186.10, while the Hang Seng Index in Hong Kong jumped 1.12% to 29,078.75.

Seoul’s blue-chip technology stocks were mixed, with Samsung Electronics up 0.49% and SK Hynix down 0.38%.

The Covid-19 situation in India continued to cause consternation among market watchers, as more than 332,000 new infections were registered in the country on Friday.

“The escalation of the pandemic in India and reports of planned tax hikes in the US are keeping the lid on market exuberance,” said Interactive Investor head of markets Richard Hunter.

“With the situation also worsening in the likes of Brazil and Japan amid the discovery of new variants, and quite apart from the human cost, sentiment has been dented by the possible impact on demand for and supply of commodities in particular.”

Oil prices were mixed as the region entered the weekend, with Brent crude last down 0.03% at $65.38 per barrel, while West Texas Intermediate rose 0.2% to $61.55.

In Australia, the S&P/ASX 200 inched ahead 0.08% to 7,060.70, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.58% at 12,650.64.

Both of the down under dollars were stronger against the greenback, with the Aussie last ahead 0.32% at AUD 1.2934, and the Kiwi advancing 0.1% to NZD 1.3944.