Asia report: Markets mixed as Turkish instability continues

Markets in Asia finished in a mixed state on Tuesday, as traders looked past recent trans-Pacific trade tension and global focus remained on a stuttering Turkey.

In Japan, the Nikkei 225 surged 2.28% to 22,358.08, as the yen weakened 0.27% against the dollar to last trade at JPY 111.00.

The safe-haven currency was being clambered for as economic and currency uncertainty in Turkey continued to grow.

All sectors in Tokyo were in the green and major exporters were mostly higher, with Honda Motor rising 1.96%.

On the mainland, the Shanghai Composite was down 0.17% at 2,781.16, and the smaller, technology-heavy Shenzhen Composite dipped 0.45% to 1,513.90.

Traders in China were busy sifting through a tsunami of data, with fixed asset investment coming in at 5.5% in the most recent reading, missing Reuters-polled forecasts for a 6% improvement.

Industrial output pleased, while retail sales for July disappointed.

South Korea’s Kospi rose 0.47% to 2,258.91, while the Hang Seng Index in Hong Kong was down 0.66% at 27,752.93.

The blue-chip technology stocks were mixed in Seoul, with electronics giant Samsung Electronics rising 0.22% as consumer excitement for its new Galaxy Note 9 flagship smartphone continued to build.

LG Electronics, on the other hand, slid 3.54%.

Global attention remained fixed on the Eurasian region, as the Turkish lira remained stubbornly low amid efforts from the central bank in Ankara to stabilise the currency.

TRY plunged 20% on Friday, as diplomatic tensions between Ankara and Washington continued to tighten amid the detention of US pastor Andrew Brunson.

Brunson has been accused by Turkish officials of supporting a group blamed for the failed 2016 coup against Recep Tayyip Erdogan’s government.

“The efforts announced by the Turkish central bank to stabilize the [lira] appear to have assisted,” noted Commonwealth Bank of Australia’s chief currency strategist Richard Grace.

“The [lira] has not endured further depreciation in overnight trade, but it has not substantially declined either.”

Oil prices were higher, with Brent crude last up 0.98% at $73.33 per barrel, and West Texas Intermediate adding 0.94% to $67.84.

In Australia, the S&P/ASX 200 added 0.76% to 6,299.60, led higher by the hefty financials subindex, as well as the information technology and telecoms sectors.

Across the Tasman Sea, the S&P/NZX 50 was ahead 0.3% at 8,971.94, led higher by the specialist dairy industry.

Infant food and dairy products exporter A2 Milk was up 3.6%, while its primary supplier of raw milk products, Synlait Milk, was ahead 3.9%.

The down under dollars were mixed against the greenback, with the Aussie last 0.1% weaker at AUD 1.3769, while the Kiwi strengthened 0.27% to NZD 1.5158.