Asia report: Most markets higher as investors digest Trump tax plan

Most markets in Asia were higher on Thursday, as investors brushed off a lower session on Wall Street overnight after the Trump administration revealed more details on the tax plan the President wants to implement.

In Japan, the Nikkei 225 lost 0.19% to settle at 19,251.87, as the Bank of Japan kept steady on its monetary policy, though it did raise its forecast for the country’s economy.

The yen was riding weaker against the greenback, and was last off 0.27% at JPY 111.36 per $1.

On the mainland, the Shanghai Composite was up 0.37% at 3,152.55, while the Shenzhen Composite was 0.54% higher at 1,900.03, with both indices having spent much of the session bobbing above and below the waterline.

South Korea’s Kospi was up 0.07% at 2,209.46, while the Hang Seng Index in Hong Kong was 0.49% higher at 24,698.48.

Fresh data released on Thursday showed estimated GDP growth in the first quarter in South Korea reached 0.9%, after improvements in both export levels and investment.

Seoul’s Samsung Electronics reported the best first quarter profits since 2003, with earnings from its memory chip division underpinning the technology conglomerate.

The company also confirmed it was not looking to move to a holding company structure, leading to an initial 1.8% plunge in its stock, though its shares recovered to close 2.43% firmer.

Other members of the Samsung stable closed lower after the news that the group was not looking to restructure, with Samsung C&T down 6.84%, Samsung Engineering off 6.04% and Samsung SDI losing 2.86%.

LCD screen manufacturer LG Display lost 4.94% after reporting record quarterly earnings on Wednesday.

In Hong Kong, real estate giant China Vanke was down 1.93%, after reports emerged that the sale of two of its projects in the mainland city of Xian had been suspended.

Gambling shares gave up some of their Wednesday gains on Thursday, with Galaxy Entertainment off 2.72%, Sands China down 2.99% and Wynn Macau 2.74% softer.

Investors spent the early hours digesting Trump’s tax plan, which would see a cut in the corporate tax rate to 15% from 35% and reduce the number of personal tax brackets to three from seven.

There were still questions hanging over the proposal, however, including whether the radical changes would lead to an increase in the federal budget deficit.

“Having bought the rumor, US investors sold after the unveiling of President Trump's tax plan,” noted CMC Markets chief market strategist Michael McCarthy.

“Although the initial response was positive ... the looming market close sparked a minor panic.”

Oil prices were lower during Asian trading, with Brent crude last down 1.13% at $51.24 per barrel and West Texas Intermediate losing 1.12% at $49.07.

Australia’s S&P/ASX 200 was up 0.16% to 5,921.48, having spent much of the session in flat territory.

In New Zealand, the S&P/NZX 50 was up 0.3% at 7,354.62, led once again by dairy products and baby food exporter A2 Milk, which gained 2.3%.

The down under dollars were both weaker, with the Aussie last off 0.03% at AUD 1.3384 against the greenback and the Kiwi retreating 0.12% to NZD 1.4528 per $1.