Asia report: Stocks rise after stellar session on Wall Street

Markets across the Asia-Pacific region closed positively on Thursday, mirroring a robust session on Wall Street.

Sentiment was boosted stateside by progress in negotiations over the imminent federal debt ceiling deadline between congressional Republicans and the White House.

House Speaker Kevin McCarthy told media that it looked “possible” to get a deal “by the end of the week”, after president Joe Biden cut his trip to Japan short to return to negotiations.

“Asian equity markets posted gains overnight as the region followed the positive momentum from Wall Street,” said TickMill Group market analyst Patrick Munnelly.

“The rally in stocks was driven by optimism surrounding regional banks and progress in debt ceiling talks.”

Munnelly noted that the Nikkei 225 surged 1.5% at the open, supported by reports of potential subsidies for Japanese chipmakers following a meeting between prime minister Fumio Kishida and foreign chip executives.

“However, the index later stalled just short of its highest levels in over three decades, as weaker-than-expected trade data emerged.

“Imports experienced their first decline in 27 months, and exports grew at the slowest pace in 26 months.”

Markets rise across the board on US-fuelled optimism

In Japan, the Nikkei 225 rose by 1.6% to close at 30,573.93, and the broader Topix was ahead 1.14% at 2,157.85.

Market movers on Tokyo’s benchmark included Advantest Corporation, up by 7.99%, Sony by 6.4%, and Tokyo Electron which saw a gain of 5.45%.

China's Shanghai Composite index improved by 0.4% ending at 3,297.32, but the Shenzhen Component experienced a slight dip of 0.12%, closing at 11.078.28.

ArcSoft Corporation led the gains in Shanghai with a 15.81% surge, while CIG ShangHai rose by 10%.

In Hong Kong, the Hang Seng Index saw an increase of 0.85% to close at 19,727.25.

Leading the gains were Zhongsheng, up by 4.23%, China Life Insurance by 3.59%, and China Petrol & Chemical Corporation saw an increase of 3.55%.

South Korea's Kospi index was also up by 0.83% to close at 2,515.40, led by Doosan Bobcat with a gain of 4.16% and HD Korea Shipbuilding, up by 3.57%.

Australia's S&P/ASX 200 rose by 0.52% to finish at 7,236.80, with Nufarm leading the market movers, up by 14.15%.

Xero and Sayona Mining also saw significant gains, up by 8.92% and 6.98% respectively.

New Zealand's S&P/NZX 50 had a modest gain of 0.2%, closing at 11,976.08.

Serko led the gains in Wellington with a 7.74% increase, followed by Synlait Milk which increased by 4.17%.

In currencies, the yen was last 0.04% weaker against the dollar to trade at JPY 137.73, and the Aussie was off 0.27% at AUD 1.5057.

The Kiwi also retreated against the greenback, by 0.11% to change hands at NZD 1.6020.

On the oil front, prices were in the red with Brent crude futures last down 0.55% on ICE at $76.54 per barrel, while the NYMEX quote for West Texas Intermediate lost 0.49% to $72.53.

Japan trade deficit almost halves, producer prices creep up in NZ

In economic news, Japan's trade deficit almost halved in April, reaching JPY 432.41bn, from JPY 854.93bn a year earlier.

A significant fall in imports - a 2.3% annual decrease that outpaced Reuters-polled expectations of a 0.3% fall - was behind the shrinkage.

Exports, however, performed almost as expected, rising 2.6% year-on-year, just about reaching the predicted growth of 3%.

“We think exports will continue to act as a drag on Japan’s modest recovery, given the increased likelihood of a US recession, feeble German factory orders and early warning signs that China’s modest recovery is at risk of stalling,” said Duncan Wrigley at Pantheon Macroeconomics.

“Japan's first quarter GDP data revealed a mild recovery, thanks to consumption and business investment, despite a negative contribution from net exports.”

Elsewhere, fresh data showed New Zealand's producer price index edging up 0.3% in the first quarter of 2023, when compared with the final quarter of last year.

The input producer price index was also up, advancing 0.2% during the period.

Notably, the farm expenses price index rose 0.7%, and the capital goods price index recorded a 1% climb, pointing to mounting costs for New Zealand's producers.

Finally, the central bank of the Philippines, Banko Sentral ng Pilipinas, kept its benchmark interest rate steady at 6.25% in its first pause since May last year.

The move brought a sequence of nine consecutive rate hikes to an end, after rates incrementally rose from 2.0% to the current 6.25%.

Reporting by Josh White for Sharecast.com.

NIKKEI 225 +480.34 (+1.6%) 30,573.93

RISERS
Advantest Corporation +7.99% JPY 14,320.0
Sony +6.4% JPY 13,720.0
Tokyo Electron +5.45% 18,730.0
Japan Steel Works +4.76% 2,577.0
Recruit Holdings +4.05% 4,241.0

FALLERS
Tokyo Electric Power Company -4.75% JPY 481.0
CyberAgent -3.16% JPY 1,135.0
Nippon Paper Industries -2.84% JPY 1,130.0
Kansai Electric Power -2.81% JPY 1,521.0
Chubu Electric Power Company -2.69% JPY 1,626.0

SHANGHAI COMPOSITE +13.09 (+0.4%) 3,297.32

RISERS
ArcSoft Corporation +15.81% CNY 39.48
CIG ShangHai A +10% CNY 57.97
Guangdong Ellington Electronics Technology +10% CNY 8.14
Deluxe Family +9.94% CNY 3.43
China First Heavy Industries +9.88% CNY 3.67

FALLERS
China TV Media -9.45% CNY 15.82
Beijing Bashi Media -5.19% CNY 4.57
Guangzhou Yuetai -4.88% CNY 0.78
Guangxi Guidong Electric Power -4.56% CNY 3.35
Argus Shanghai Textile Chemicals -4.4% CNY 13.68

HANG SENG INDEX +166.68 (+0.85%) 19,727.25

RISERS
Zhongsheng +4.23% HKD 33.30
China Life Insurance +3.59% HKD 15.00
China Petrol & Chemical Corporation H +3.55% HKD 5.25
Lenovo Group +3.4% HKD 7.91
PetroChina H +3.37% HKD 5.52

FALLERS
Longfor Properties -3.97% HKD 17.88
WuXi Biologics -2.79% HKD 43.60
ENN Energy -2.56% HKD 106.50
Alibaba Health Information Technology -1.64% HKD 4.79
Tingyi -1.27% HKD 12.48

KOSPI 100 +24.62 (+1%) 2,484.73

RISERS
Doosan Bobcat +4.16% KRW 52,600
HD Korea Shipbuilding & Offshore Engineering +3.57% KRW 90,000
Hyundai Mobis +2.69% KRW 229,000
Samsung Electronics +2.39% KRW 141,400
Hanon Systems +2.13% KRW 9,610

FALLERS
Hanmi Pharm Co -2.78% KRW 297,500
Hanmi Science -2.49% KRW 37,200
Orion -2.44% KRW 131,900
SK Biopharma -2.11% KRW 69,700|
Hybe -2.05% KRW 286,000

S&P/ASX 200 +37.60 (+0.52%) 7,236.80

RISERS
Nufarm +14.15% AUD 6.05
Xero +8.92% AUD 102.49
Sayona Mining +6.98% AUD 0.23
Paladin Energy +6.25% AUD 0.68
Mercury NZ +6.25% AUD 6.17

FALLERS
Beach Energy -4.26% AUD 1.35
Aristocrat Leisure -3.06% AUD 38.04
Infratil -3.04% AUD 8.92
Gold Road Resources -2.93% AUD 1.825
Graincorp -2.86% AUD 7.80

S&P/NZX 50 +24.42 (+0.2%) 11,976.08

RISERS
Serko +7.74% NZD 3.20
Synlait Milk +4.17% NZD 1.50
Eroad +3.77% NZD 0.55
Summerset Group +3.1% NZD 8.66
Oceania Healthcare +2.67% NZD 0.77

FALLERS
Restaurant Brands NZ -10.96% NZD 6.50
Pacific Edge -2.33% NZD 0.42
Scales Corporation -2.12% NZD 3.23
Chorus -1.78% NZD 8.27
Ebos Group -1.34% NZD 43.40