Asia report: Stocks mixed, Nikkei hits 33-year high as G7 begins

Asia-Pacific stock markets closed on a mixed note on Friday, marking the end of a tumultuous week influenced by a variety of factors, including concerns over the US federal debt ceiling.

A standout performance came from Japan, where the benchmark Nikkei 225 reached a 33-year high as the G7 meeting kicked off in Hiroshima.

“Asian equities are mostly positive heading into the weekend, taking their cue from the tech-led gains on Wall Street,” said TickMill market analyst Patrick Munnelly.

“The Nasdaq's strong performance and the S&P 500 reaching a nine-month high due to optimism surrounding the debt ceiling and solid economic data set a positive tone.

“The Nikkei 225 index surged 0.8% at the opening, reaching its highest level since August 1990.”

It did, however, face resistance near the 31,000 handle, Munnelly noted, and trimmed some gains as investors digested the latest inflation figures, which mostly met expectations but showed a faster pace of price rises.

“Chinese markets, however, underperformed as Alibaba's revenue disappointed investors.”

Markets mixed, Nikkei reaches highest level in three decades

Japan's benchmark Nikkei 225 rose by 0.77% to 30,808.35 - its highest point since 1990 - while the broader Topix inched up 0.18% to 2,161.69.

Ricoh was a leading gainer in Tokyo, surging 7.69%, while Yaskawa Electric Corporation increased 5.38%, and Japan Steel Works was up 4.97%.

China's markets presented a mixed picture, with the Shanghai Composite falling 0.42% to close at 3,283.54, while the Shenzhen Component managed gains of 0.12% to 11,091.36.

Among the biggest losers in Shanghai were Hanma Technology and CIG ShangHai, which saw their shares dip by 8.19% and 7.71%, respectively.

In Hong Kong, the Hang Seng Index shed 1.4% to end at 19,450.57.

Tech giants suffered, with Alibaba shares losing 6.04%, while JD.com and Baidu were down by 4.72% and 4.46%, respectively.

South Korea's Kospi rose by 0.89% to 2,537.79, as Hanjinkal and Samsung Engineering led the gainers, increasing by 4.37% and 4.33%, respectively.

Australia's S&P/ASX 200 edged up 0.59% to 7,279.50, with Summerset Group and AUB Group leading the gains, their shares up by 6.5% and 5.88% respectively.

In New Zealand, the S&P/NZX 50 climbed 1.03% to 12,099.74, with Pacific Edge and Ryman Healthcare both seeing significant gains, up by a respective 8.33% and 8.21%.

Currency markets saw the yen strengthening 0.33% on the dollar to trade at JPY 138.25, while the Aussie gained 0.43% to AUD 1.5037.

The Kiwi advanced 0.74% on the greenback as well, to change hands at NZD 1.5943.

In commodities, Brent crude and West Texas Intermediate futures were both higher, with the former up 1.29% on ICE and the latter’s NYMEX quote rising 1.32%, reaching $76.84 and $72.89 per barrel, respectively.

Core inflation surges in Japan, NZ’s trade surplus shrinks

On the economic front, Japan's core inflation surged 3.4% nationwide year-on-year in April, well above the Bank of Japan’s target of 2%.

Economists polled by Reuters had accurately anticipated this rate.

The rise was a steady increase from the prior month, which saw a core inflation rate of 3.1%.

At the same time, overall inflation continued its upward trajectory, climbing to 3.5% in April from 3.2% in March.

“We think that the Bank of Japan will recognise the likelihood of further food price hikes, as well as the economy’s tentative rebound in the first quarter,” said Duncan Wrigley at Pantheon Macroeconomics.

“But Japan is still far from a self-sustaining growth cycle - real wages are falling, and the global outlook is grim for the second half.

“The BoJ has announced it will start an 18-month long policy review, but is unlikely to make any significant policy changes at its 16 June meeting.”

Elsewhere, New Zealand’s trade surplus contracted in April, to NZD 427m, from NZD 470m a year prior.

StatsNZ, the state statistics department, disclosed a 10% year-on-year growth in exports, amounting to NZD 6.8bn, while imports rose by a slightly higher rate of 12% to NZD 6.4bn.

It highlighted growth in dairy products on the export front, notably milk powder, butter, and cheese, which saw a substantial 26% year-on-year leap to NZD 2bn.

Petroleum and petroleum products dominated the import list, seeing a dramatic rise of 312% to reach NZD 974m.

That surge was expected, given the large Marsden Point Refinery was closed by its shareholders including BP and ExxonMobil in April last year, in favour of energy imports from cheaper producers in Asia.

Reporting by Josh White for Sharecast.com.

NIKKEI 225 +234.42 (+0.77%) 30,808.35

RISERS
Richoh +7.69% JPY 1,134.0
Yaskawa Electric Corporation +5.38% JPY 5,880.0
Japan Steel Works +4.97% JPY 2,705.0
Olympus Corporation +4.76% JPY 2,284.0
Recruit Holdings +4.55% JPY 4,434.0

FALLERS
Advantest Corporation -2.86% JPY 13,910.0
Kobe Steel -2.84% JPY 1,096.0
Nippon Paper Industries -2.83% JPY 1,098.0
CyberAgent -2.73% JPY 1,104.0
Tokyu Corporation -2.66% JPY 1,943.0

SHANGHAI COMPOSITE -13.78 (-0.42%) 3,283.54

RISERS
Fujian Raynen Tech +10.02% CNY 13.40
Guizhou Sanli Pharmaceutical +10.02% CNY 19.21
GuangDong Super Telecom +10% CNY 38.93
Hongda +8.64% CNY 4.40
Fuzhou Rockchip Electronics +8.15% CNY 84.61

FALLERS
Hanma Technology -8.19% CNY 7.62
CIG ShangHai A -7.71% CNY 53.50
China Shipbuilding Industry Group Power -6.44% CNY 19.33
IReader Tech -6.05% CNY 25.48
China Reform Culture Holdings -5.62% CNY 13.28

HANG SENG INDEX -276.68 (-1.4%) 19,450.57

RISERS
Budweiser Brewing Company +1.96% HKD 20.80
HK & China Gas +1.92% HKD 7.44
Nongfu Spring +1.57% HKD 42.15
China Resources Beer Holdings +1.5% HKD 54.05
China Mobile +1.22% HKD 66.40

FALLERS
Alibaba -6.04% HKD 82.45
JD.com -4.72% HKD 137.20
Baidu -4.46% HKD 120.00
Meituan -3.67% HKD 128.60
WuXi Biologics -3.33% HKD 42.15

KOSPI 100 +34.78 (+1.4%) 2,519.51

RISERS
Hanjinkal +4.37% KRW 43,000
Samsung Engineering +4.33% KRW 30,150
SK Hynix +3.95% KRW 97,300
Samsung Electronics +3.32% KRW 68,400
SK Square +3.13% KRW 44,500

FALLERS
Orion -3.94% KRW 126,700
SK Innovation -2.63% KRW 177,600
SD Biosensor -2.6% KRW 17,620
SK IE Technology -2.49% KRW 82,400
Posco Holdings -2.28% KRW 364,500

S&P/ASX 200 +42.70 (+0.59%) 7,279.50

RISERS
Summerset Group Holdings +6.5% AUD 8.52
AUB Group +5.88% AUD 27.38
Xero +5.38% AUD 108.00
Insurance Australia Group +4.64% AUD 5.19
Virgin Money UK +3.56% AUD 2.91

FALLERS
Nufarm -4.63% AUD 5.77
Whitehaven Coal -4.32% AUD 6.86
New Hope Corporation -3.04% AUD 5.11
Yancoal Australia -2.03% AUD 5.31
Coronado Global Resources -2.02% AUD 1.455

S&P/NZX 50 +123.66 (+1.03%) 12,099.74

RISERS
Pacific Edge +8.33% NZD 0.455
Ryman Healthcare +8.21% NZD 8.21
Summerset Group Holdings +4.73% NZD 9.07
Mainfreight +4.08% NZD 71.70
Restaurant Brands NZ +3.54% NZD 6.73

FALLERS
Eroad -3.64% NZD 0.53
Oceania Healthcare -1.3% NZD 0.76
Ebos Group -0.92% NZD 43.00
Manawa Energy -0.41% NZD 4.80
Air New Zealand 0.00% NZD 4.80