Asia report: Tech plays lead region higher into the weekend

Most stock markets in Asia were in the green on Friday, with Hong Kong’s bourse leading the gains after tech behemoth Alibaba beat fourth quarter earnings expectations.

In Japan, the Nikkei 225 was up 0.66% at 26,781.68, as the yen strengthened 0.07% on the dollar to last trade at JPY 127.03.

Technology conglomerate SoftBank Group jumped 3.43%, while among the benchmark’s other major components, automation specialist Fanuc was down 0.03% and fashion firm Fast Retailing lost 0.28%.

The broader Topix index was 0.52% firmer by the end of trading in Tokyo, closing a t1,887.30.

On the mainland, the Shanghai Composite was up 0.23% at 3,130.24, and the technology-heavy Shenzhen Composite was 0.12% weaker at 11,193.59.

South Korea’s Kospi added 0.98% to 2,638.05, while the Hang Seng Index in Hong Kong jumped 2.89% to 20,697.36.

Alibaba Group rocketed 12.21% in the special administrative region after it reported earnings of CNY 7.31 per share for the fourth quarter, on total revenue of CNY 204.05bn.

Both figures were higher than analyst expectations for earnings of CNY 7.31 per share on revenue of CNY 119.25bn.

The company’s peers were also in the green, with NetEase up 4.43% and Tencent Holdings 2.27% firmer.

Seoul’s blue-chip technology stocks were on the front foot as well, with Samsung Electronics up 0.91% and SK Hynix jumping 2.91%.

“The wave of cautious optimism filtered through to the Asian markets, and were consolidated after revenue growth from Alibaba beat expectations, boosting tech shares,” said Interactive Investor head of markets Richard Hunter.

“In addition, the reported cooling of tensions between China and the US, and the likelihood of more stimulus from the former to support the local economy underpinned the positive moves.”

Oil prices were higher as the region entered the weekend, with Brent crude last up 0.77% on ICE at $118.30 per barrel, and West Texas Intermediate rising 0.42% on NYMEX at $114.57.

In Australia, the S&P/ASX 200 jumped 1.08% to 7,182.70, after fresh data showed retail sales rising 0.9% in April to what the Bureau of Statistics called “another record level”.

It was a mixed session for the sunburnt country’s listed retailers, however, with Wesfarmers rising 1.63%, Myer Holdings and Woolworths Group finishing flat, and Coles Group 0.57% weaker.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.34% weaker at 11,065.15, led lower by fleet management company Eroad, which slid 7.4% after it missed full-year expectations earlier in the week.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.61% at AUD 1.4001, and the Kiwi advancing 0.66% to NZD 1.5329.

Reporting by Josh White at Sharecast.com.