Asia report: Most markets higher as US tax reform optimism grows

Most markets in Asia finished higher on Tuesday, after a solid close on Wall Street overnight as traders remained optimistic that the Republicans would succeed in passing their tax reform bill this week.

In Japan, the Nikkei 225 was down 0.15% at 22,868.00, as the yen weakened 0.05% against the dollar to last trade at JPY 112.61.

Technology plays were among the losers in Tokyo, while carmakers and retailers saw gains, with Mitsubishi Motor outperforming as it rose 2.13%.

Among the losers were construction firms implicated in a bid rigging scandal in a maglev railway project.

Taisei Corporation was down 6.3% amid reports its officers were raided by prosecutors on Tuesday, while Kajima and Shimizu were off 5.24% and 2.75% after being raided themselves on Monday.

Obayashi Corporation, also implicated in the scandal was down 1.3% by the end of the session.

On the mainland, the Shanghai Composite added 0.88% to 3,296.68, and the smaller, technology-heavy Shenzhen Composite advanced 0.87% to 1,905.62.

South Korea’s Kospi was off 0.13% at 2,478.53, while the Hang Seng Index in Hong Kong added 0.7% to settle at 29,253.66.

Blue-chip technology stocks were winners in Seoul, with Samsung Electronics ahead 0.7% and SK Hynix up 3.89%.

Steelmakers were mixed on the peninsula, with Hyundai Steel down 0.53% while Posco rose 0.31%.

Carmakers were under pressure in Korea, with Hyundai Motor falling 0.65% amid an ongoing industrial dispute with union workers, and as concerns rose around possible changes to the US-Korea free trade agreement.

The Korean government reportedly expects its US counterparts to seek reduced non-tariff barriers on car exports from the US to South Korea.

Oil prices were higher, with Brent crude last rising 0.35% to $63.63 per barrel, and West Texas Intermediate rising 0.45% to $57.48.

In Australia, the S&P/ASX 200 ended the session 0.54% higher at 6,071.80, led higher by the major miners, which rose as base metal and iron ore prices moved higher.

BHP was ahead 0.78% and Mount Gibson was up 5.95%, while the gold subindex also enjoyed a bumper Tuesday, adding 1.97%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.7% to close at 8,401.20, led higher by cargo firm Freightways and manuka honey exporter Comvita, which were up 3.5% and 3% respectively.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.17% at AUD 1.3023 and the Kiwi advancing 0.29% to NZD 1.4257.