Asia report: Most markets lower, Aussie telecoms merger confirmed

Most markets in Asia finished lower on Thursday, paring back earlier gains as the third and fourth biggest telecoms in Australia agreed plans for a merger.

In Japan, the Nikkei 225 eked out gains of 0.09% to 22,869.50, as the yen strengthened 0.17% against the dollar to last trade at JPY 111.49.

On the mainland, the Shanghai Composite was 1.14% lower at 2,737.74, and the smaller, technology-heavy Shenzhen Composite slipped 1.48% to 1,467.18.

South Korea’s Kospi was off 0.07% at 2,307.35, while the Hang Seng Index in Hong Kong slid 0.89% to 28,164.05.

Traders in Seoul cheered reports that US president Donald Trump had proclaimed targeted relief from steel and aluminium quotas from certain countries earlier in the day, with those countries including South Korea.

That led to a rise in the share price for the nation’s steel producers, with Hyundai Steel adding 0.56% and Posco gaining 0.3%.

Oil prices were higher, with Brent crude last up 0.72% at $77.70 per barrel and West Texas Intermediate ahead 0.57% at $69.61.

In Australia, the S&P/ASX 200 was almost flat, losing 0.01% to settle at 6,351.80 as Vodafone Hutchison Australia and TPG Telecom agreed terms for an AUD 15bn merger.

Vodafone Hutchison’s primary business is operating one of the country’s three mobile networks, while TPG rakes in most of revenue from broadband retail.

Hutchison Telecommunications Australia, which owns 50% of Vodafone Hutchison Australia alongside the Vodafone Group, leapt 44% in Sydney.

TPG Telecom was up 18.15%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.2% at 9,339.88, led lower by subscription broadcaster Sky - no relation to its London-listed namesake - which lost 4.2%.

The company wrote down its value by NZD 360m last Friday, leading to an annual loss of NZD 240.7m.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.2% at AUD 1.3707, and the Kiwi retreating 0.78% to NZD 1.5014.