Asia report: Stocks mixed as traders look to US midterms

Traders in the Asia-Pacific region were left with a mixed slate of stocks by the end of trading on Tuesday, as investors held their collective breath ahead of the midterm elections in the United States.

In Japan, the Nikkei 225 was up 1.25% at 27,872.11, as the yen strengthened 0.25% on the dollar to last trade at JPY 146.27.

Uniqlo owner Fast Retailing was down 0.41%, while robotics specialist Fanuc was up 0.43% and tech investing giant SoftBank Group jumped 4.97%.

The broader Topix index was 1.21% firmer by the end of the session in Tokyo, settling at 1,957.56.

Summary opinions from the Bank of Japan’s October policy meeting were released earlier, with the board agreeing there was “no need to immediately change monetary policy”.

“Continued monetary easing is necessary in order to raise productivity and wage levels through supply-side reforms,” the policymakers reportedly agreed.

“It is also important to continue to examine how future exit strategies will affect the market and whether market participants will be well prepared for them.”

On the mainland, the Shanghai Composite was 0.43% weaker at 3,064.49, and the technology-centric Shenzhen Component slipped 0.58% to 11,142.93.

South Korea’s Kospi jumped 1.15% to 2,399.04, while the Hang Seng Index in Hong Kong was 0.23% weaker at 1,093.68.

The blue-chip technology stocks were on the front foot in Seoul, with Samsung Electronics up 2.66% and SK Hynix 1.39% firmer.

Payments platform KakaoPay leapt 9.59%, meanwhile, after it announced expansions to its services in Japan, and in mainland China in partnership with AliPay.

Oil prices were in the red as the region went to bed, with Brent crude futures last down 0.95% on ICE at $96.99 per barrel, and the NYMEX quote for West Texas Intermediate losing 1.26% to $90.63.

“The sharp decline in the dollar we saw on Friday continued yesterday as the greenback lost ground across the board, with the pound benefitting the most, pushing above the $1.1500 area, as markets looked ahead to this week’s third quarter GDP number and next week’s autumn budget,” said CMC Markets chief market analyst Michael Hewson of the global situation on Tuesday morning.

“The weakness in the dollar came despite a continued rise in US yields, while US markets also posted another strong session, as the midterm elections get underway later today.

“With the polls in the US pointing to the Republicans winning at least one of the US legislatures, which would be a catalyst for the political gridlock over the next two years and thus stymieing the ability of politicians to pass any legislation, that could impact negatively on business.”

In Australia, the S&P/ASX 200 was up 0.36% at 6,958.90, while across the Tasman Sea, New Zealand’s S&P/NZX 50 slid 1.23% to 11,151.89.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.03% at AUD 1.5439, and the Kiwi retreating 0.09% to NZD 1.6854.

Reporting by Josh White for Sharecast.com.