Asia report: Markets mostly higher ahead of earnings season

Most markets in Asia finished higher on Tuesday, following another solid finish on Wall Street overnight as investors once again shrugged off concerns over trade tensions.

In Japan, the Nikkei 225 was up 0.66% at 22,196.89, as the yen weakened 0.34% against the dollar to last trade at JPY 111.23.

Financial plays were higher in Tokyo, as did other blue-chip stocks, with manufacturer Fanuc rising 1.49% and fashion group Fast Retailing up 1.7%.

On the mainland, the Shanghai Composite was up 0.44% at 2,827.44, and the smaller, technology-heavy Shenzhen Composite added 0.71% to 1,585.78.

Fresh data out of the People’s Republic showed China’s consumer price index rose 1.9% year-on-year in June, in line with market expectations.

The country’s producer price index was up 4.7% for the month, beating the 4.5% anticipated by analysts polled by Reuters.

South Korea’s Kospi was up 0.37% at 2,294.16, while the Hang Seng Index in Hong Kong slipped 0.02% to 28,682.25.

The blue-chip technology stocks were mixed on Seoul, but Samsung Electronics outperformed, adding 1.54%.

Traders on both sides of the Pacific had bumped trade tensions between Washington and Beijing from the top of the agenda, instead turning their attention to the upcoming earnings season.

“No new news from the US-Sino trade war has helped investors focus back on fundamentals,” noted National Australia Bank senior foreign exchange strategist Rodrigo Catril.

“With the US earnings season starting later this week, the US has led the gains in equities overnight.”

Oil prices were higher, with Brent crude last up 1.2% to $79.02 per barrel, and West Texas Intermediate 0.41% ahead $74.15.

In Australia, the S&P/ASX 200 slid 0.44% to 6,258.10, led lower by the hefty financials subindex, which was off 1.01%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.4% at 9,022.93, led lower by energy and telecoms utility Trustpower, which lost 2.3%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.37% at AUD 1.3442, and the Kiwi retreating 0.34% to NZD 1.4675.