Asia report: Most markets higher as DPRK tests another missile

Most markets in Asia were higher on Monday, reacting to Wall Street’s Friday recovery with traders seeming to largely brush off another missile test from North Korea over the weekend.

In Japan, the Nikkei 225 was up 0.45% at 19,678.28, as the yen weakened by 0.16% against the greenback to JPY 111.44.

Fresh economic data showed a 7.5% improvement in exports year-on-year for April, which missed expectations for a 7.8% increase.

Imports beat expectations, however, coming in at 15.1% against forecasts for a 14.8% improvement.

Toshiba shares were down 1.08%, after its failing US nuclear acquisition Westinghouse Electric confirmed it was going to lock-out 172 union members after a breakdown in negotiations.

Airbag manufacturer Takata saw its stock surge 16.84%, continuing to rise on the back of news late last week that it had agreed to a settlement over its defective airbags.

On the mainland, the Shanghai Composite was down 0.48% at 3,075.92, while the smaller, tech-heavy Shenzhen Composite lost 1.38% at 1,828.22.

South Korea’s Kospi was 0.68% firmer at 2,304.03, while the Hang Seng Index in Hong Kong was up 0.86% at 25,391.34.

Hong Kong’s primary airline Cathay Pacific said it was going to slash 600 jobs in an attempt to stem losses, after it posted its first annual loss in almost a decade in March.

The airline said 25% of management and 18% of non-management employees were being culled, although neither pilots nor cabin crew were affected.

Its shares finished 2.3% higher.

The Democratic People’s Republic of Korea said its missile test on Sunday was an intermediate-range ballistic missile.

Its state media said the missile’s launch was approved personally by leader Kim Jong Un.

Also on the geopolitical front, US President Donald Trump was in the middle of his first foreign trip since taking office, which started at the weekend in Saudi Arabia.

The President signed a controversial $350bn arms deal between the two countries on Saturday.

Oil prices were higher, with Brent crude last up 0.83% to $54.06 per barrel and West Texas Intermediate rising 0.9% to $51.13.

Australia’s S&P/ASX 200 was 0.76% higher, settling at 5,771.92, which was underpinned by its materials and energy subindexes, which finished 1.76% and 2.15% higher respectively.

In New Zealand, the S&P/NZX 50 was 0.2% firmer at 7,409.50, led higher by broadband and mobile provider Spark which finished up 2.9%, while casino operator SkyCity Entertainment added 2.1%.

The down under dollars were both stronger, with the Kiwi surging 0.51% on the greenback to NZD 1.4363, while the Aussie strengthened 0.07% to AUD 1.3402 per $1.