Asia report: Most markets come under mid-week pressure

Markets in Asia finished mostly lower on Wednesday, as most major trading currencies in the region gave up further ground against the dollar, which itself was holding its ground against the lira amid a currency crisis in Turkey.

In Japan, the Nikkei 225 was down 0.68% at 22,204.22, as the yen strengthened 0.13% against the dollar to last trade at JPY 111.

Most sectors were in the red on the Japanese benchmark, led lower by the oil and coal subindex, among others.

Fast fashion group Fast Retailing was 0.45% lower, and technology giant SoftBank Group slid 2.63%.

On the mainland, the Shanghai Composite slid 2.06% to 2,723.64, while the smaller, technology-heavy Shenzhen Composite dropped 2.12% to 1,481.82.

It marked the third straight session of losses for the Shanghai benchmark in China, and came after the latest data on fixed-asset investment and industrial output missed expectations on Tuesday.

South Korean markets were closed for a holiday, while the Hang Seng Index in Hong Kong fell 1.55% to 27,323.59.

The Turkish lira remained relatively stable overnight after a period of serious decline against the dollar, which came in the wake of a political standoff over the detention of an American pastor in the Eurasian nation.

The stability was largely seen as a reaction in forex markets to comments from Turkey’s finance minister that the lira would be protected.

“[The] rebound in the lira gave European banks and other emerging markets some respite,” noted ANZ head of Australian economics David Plank.

“However, it is fair to say that the saga is not over.”

Oil prices were lower, with Brent crude last down 0.85% at $71.85 per barrel, and WEst Texas Intermediate falling 1.06% to $66.34.

In Australia, the S&P/ASX 200 added 0.47% to 6,329.00, though the hefty financials subindex was under the cosh as Commonwealth Bank of Australia slid 2.47%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% to 8,987.49 on the back of a mixed earnings season there.

The self-listed exchange operator NZX rose 1.8%, after it announced a special dividend following the sale of non-core assets.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.14% at AUD 1.3835, and the Kiwi retreating 0.2% to NZD 1.5246.