Asia report: Markets move higher with oil, NZ stands pat on interest rates

Markets in Asia finished mostly higher on Thursday, as oil prices reached their highest levels since 2014 as investors continued to react to Donald Trump’s decision to exit the Iran nuclear deal.

In Japan, the Nikkei 225 was ahead 0.39% at 22,497.18, as the yen strengthened 0.31% against the dollar to last trade at JPY 109.40.

Miners and oil plays led the broader Topix up 0.27% in Tokyo, with the two subindices adding 2.93% and 1.97% respectively.

On the mainland, the Shanghai Composite was 0.51% higher at 3,175.17, and the smaller, technology-heavy Shenzhen Composite closed 0.52% ahead at 1,844.04.

South Korea’s Kospi rose 0.83% to 2,464.16, while the Hang Seng Index in Hong Kong was up 0.39% at 30,809.22.

Leading headlines in Hong Kong was the news that Li Ka-shing was stepping down as chairman of CK Hutchison holdings at the conglomerate’s annual general meeting.

The company - which owns the Three mobile network and most of Superdrug in the UK - had announced earlier this year that Li’s son Victor would take the reins upon his retirement.

Seoul technology darling Samsung Electronics rose 1.38%, despite comments from South Korea’s competition regulator that the Samsung Group’s structure was unsustainable.

Oil prices continued to grow, with Brent crude last up 0.07% at $77.26 per barrel and West Texas Intermediate ahead 0.21% at $71.29.

Prices were moving higher as investors continued to mull what renewed US sanctions on Iran would mean for the global supply of oil.

After announcing that the US was withdrawing from the Obama-brokered nuclear deal with Iran on Tuesday, it’s understood sanctions will be reimposed on the country after 180 days unless a new deal is reached by then.

In Australia, the S&P/ASX 200 finished the day 0.18% above the waterline at 6,118.70.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 8,637.72, as the Reserve Bank stood pat on interest rates, keeping the country’s official cash rate at 1.75%.

The central bank’s governor, Adrian Orr, said he expected to keep the rate at such an “expansionary level” for “a considerable period of time”.

It was a mixed picture for the down under dollars as the Kiwi fell 0.21% to last trade at NZD 1.4354 against the greenback after the interest rate announcement, while the Aussie strengthened 0.88% to AUD 1.3287.