Asia report: French frenzy still pushes markets higher

Markets in Asia finished higher on Tuesday, as the French election frenzy continued, though tensions on the Korean peninsula managed to put a lid on some of the gains.

Japan’s Nikkei 225 added 1.08% to 19,073.33, as the yen moved weaker against the greenback.

It was last 0.68% behind the US currency at JPY 110.52 per $1.

On the mainland, the Shanghai Composite kicked into recovery mode after posting its worst session of the year so far on Monday, adding 0.19% to 3,135.40.

The smaller, technology-heavy Shenzhen Composite was up 0.51% to 1,882.86.

South Korea’s Kospi was up 1.06% at 2,196.85 - a two year high for the benchmark - while Hong Kong’s Hang Seng Index was 1.31% firmer at 24,455.94.

HSBC shares were 1.27% higher, after it received a formal mandate to advise Saudi Aramco on its initial public offering.

In Seoul, fresh data pointed to a surge in consumer confidence, as that measure reached a six month high.

It was the third month of stronger consumer confidence on the trot for the South Korean economy.

Asian markets appeared to take their cue from another bumper session on Wall Street, as investors counted their French chickens after centrist candidate Emmanuel Macron won pole position in that country’s presidential elections, with 23.7% of the first round vote.

He will go head-to-head with controversial far-right candidate Marine Le Pen, who unexpectedly announced she was temporarily stepping down as leader of the Front National party amid the presidential race on Monday evening.

“France would be set on two very different courses depending upon who wins the election, noted BK Asset Management managing director Kathy Lien.

“With this in mind, there has been very little follow through in the euro.”

Traders in the region still kept one eye on the Korean peninsula, as a battle group headed by aircraft carrier USS Carl Vinson voyaged to the Sea of Japan.

Oil prices were higher, after declining overnight amid doubts the OPEC cartel would extend its output cuts.

Brent crude was last up 0.16% at $51.68 per barrel and West Texas Intermediate was 0.1% firmer at $49.28.

Markets in both Australia and New Zealand were closed as both countries observed the ANZAC Day war remembrance holiday.

The down under dollars took a holiday against the greenback as well, with the Aussie last 0.43% weaker against it at AUD 1.3267 and the Kiwi retreating 0.75% to NZD 1.4359.