Asia report: Most markets rise with technology stocks in focus

Most equity markets in Asia managed modest gains on Wednesday, with technology plays in particular focus following a solid session for their stateside peers overnight.

In Japan, the Nikkei 225 was up 0.16% at 28,562.21, as the yen weakened 0.13% against the dollar to last trade at JPY 114.25.

Tokyo’s benchmark was dragged by a negative session for its major components, with automation specialist Fanuc down 0.89%, fashion firm Fast Retailing slipping 0.07%, and technology conglomerate SoftBank Group 0.24% weaker.

The broader Topix index managed gains of 0.09% by the end of trading, closing at 1,971.51.

On the mainland, the Shanghai Composite was off 0.07% at 3,622.62, and the smaller, technology-heavy Shenzhen Composite was 0.64% firmer at 2,520.30.

South Korea’s Kospi was 0.32% stronger at 2,984.48, while the Hang Seng Index in Hong Kong was 0.57% higher at 23,102.33.

Chinese technology stocks were among the gainers in the special administrative region, with Alibaba up 0.88% and Tencent Holdings 0.5% stronger.

Seoul’s blue-chip technology stocks were a picture of health, with Samsung Electronics up 1.66% and SK Hynix jumping 2.01%.

The moves in technology stocks came after the sector turned in a strong performance on Wall Street overnight, where the Nasdaq Composite jumped 2.4%.

“As a result of positive Omicron news, Asia-Pacific markets have also benefited from a boost in overall sentiment,” said AvaTrade chief market analyst Naeem Aslam.

“South Africa, which was the first country to bring the new variant to the attention of other countries, is also reporting a sharp decline in daily cases, with infections reported at their lowest level in nearly two weeks.”

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.22% at $74.14 per barrel, and West Texas Intermediate ahead 0.44% at $71.43.

In Australia, the S&P/ASX 200 eked out gains of 0.13% to 7,364.80, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.07% above the waterline at 12,865.22.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.13% at AUD 1.3959, and the Kiwi advancing 0.12% to NZD 1.4754.