Asia report: Most markets higher, Australia business confidence hits record

Most markets in Asia closed in a positive state on Monday, as investors brushed off the seriously weaker-than-expected US payrolls report on Friday, while business confidence rocketed to a new record in Australia in April.

In Japan, the Nikkei 225 was ahead 0.55% at 29,518.34, as the yen weakened 0.17% against the dollar to last trade at JPY 108.78.

Fashion firm Fast Retailing was down 4.83%, while among the benchmark’s other major components, automation specialist Fanuc was up 0.3% and technology conglomerate SoftBank Group was 1.7% firmer.

The broader Topix index was up 0.99% by the end of trading in Tokyo, closing at 1,952.27.

On the mainland, the Shanghai Composite managed gains of 0.27% to 3,427.99, and the smaller, technology-heavy Shenzhen Composite was 0.19% higher at 2,243.93.

South Korea’s Kospi rose 1.63% to 3,249.30, while the Hang Seng Index in Hong Kong slipped 0.05% to 28.595.66.

The blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 1.59% and SK Hynix ahead 0.39%.

Monday’s session was the first time traders in Asia had the opportunity to react to Friday’s nonfarm payrolls report out of the United States, which came in well below expectations at 266,000 net payrolls were added in April.

Market watchers had been expecting as many as one million new payrolls to have been added during the month.

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.57% at $68.67, and West Texas Intermediate rising 0.56% to $65.26.

In Australia, the S&P/ASX 200 jumped 1.3% to 7,172.80, as the National Australia Bank business confidence survey showed business conditions rising to a record 32 for April, from 25 in March.

Trading conditions rose to 40 from 35, profitability advanced to 33 from 25, and employment conditions were at 22 from 15.

“The April survey result is simply stunning, with many variables reaching survey highs,” said analysts at National Australia Bank.

“Conditions reset last month’s high, driven by further gains across trading conditions, profitability and employment.

“Confidence has also set a new high - pointing to ongoing strength in conditions in the near term.”

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.56% by the end of the day, to 12,659.01, as A2 Milk slumped 12.8%.

The specialist dairy exporter sank to its lowest price for more than three years after it halved its projected profit margins to between 11% and 12%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.18% at AUD 1.2701, and the Kiwi advancing 0.17% to NZD 1.3714.