Asia report: Markets finish mixed as India stands pat on rates

Markets in Asia finished mixed on Wednesday, with a number of markets still closed for public holidays, after Wall Street put in a solid showing in its Tuesday session overnight.

In Japan, the Nikkei 225 was up 0.06% at 20,626.66, as the yen strengthened 0.33% against the dollar, last trading at JPY 112.48.

On Tokyo’s corporate front, Fast Retailing finished down 0.79% after racing above the waterline in early trading.

The Uniqlo fast fashion owner’s initial gains were the result of reports that same-store sales at the brand’s domestic outlets were up 6.3% year-on-year in September.

Shares in screen maker Japan Display surged almost 24% by the end of the session, after the Nikkei reported that the company was planning to begin production of small OLED panels - intended for smartphones - from 2019.

The Nikkei added that the company’s affiliate JOLED was also planning to produce medium and large OLED panels - intended for televisions and industrial applications - on a similar timeframe.

Japan Display was also said to be investigating the possibility of splitting its smartphone panel investment away from the main firm.

Markets in mainland China remained closed for a public holiday, as did those in South Korea, keeping regional volumes lower.

Hong Kong’s traders were back on the floor, with the Hang Seng Index posting a 0.73% gain to close at 28,379.18.

Shares in China-based electric vehicle maker BYD Company raced ahead 7.71%.

Many investors focussed their attention on India during the session, with that country’s central bank standing pat on interest rates at 6% late in the east Asian day, though it did lower its 2018 growth projections.

“There is pressure on the committee to ease rates, given that the repo rate is at 6 percent versus below 4 percent CPI inflation,” noted DBS Bank economist Radhika Rao before the decision was released.

“The RBI is, however, unlikely to react this week as besides a gradual rise in inflation, significant changes in the macro backdrop also need to be assessed further.”

Oil prices were lower during Asian trading, with Brent crude last down 0.41% at $55.77 per barrel and West Texas Intermediate losing 0.4% to $50.22.

In Australia, the S&P/ASX 200 was down 0.87% at 5,652.06, with the hefty financials subindex losing 0.71% and the energy sector off 1.09%.

The major banks were mostly lower, with Australia and New Zealand Banking Group down 2.11%, National Australia Bank off 1.21% and Westpac Banking Corporation losing 0.87%.

Commonwealth Bank of Australia went against the grain and added 0.32% by end-of-play in Sydney.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.2% to 7,949.69, led higher by infant food and dairy exporter A2 Milk, which added 5% to reach a fresh record price.

The company was prominent in the local market after it - along with competitor Synlait - had their brands and recipes registered by China’s rigorous food import safety scheme.

Synlait’s shares were down 1.5% on Wednesday.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.38% at AUD 1.2715 and the Kiwi advancing 0.29% to NZD 1.3927.