Asia report: Most markets stronger as Korea fears wane

Most markets in Asia were in the green on Tuesday, taking their cues from a solid Monday on Wall Street as geopolitical concerns on the Korean Peninsula faded for now.

In Japan, the Nikkei 225 was up 1.18% at 19,776.62, as the yen weakened 0.38% against the dollar to last sit at JPY 109.81.

Major exporters finished the day ahead, with Honda up 2.21%, Nintendo adding 3.27% and Panasonic closing 3.81% higher.

Japan Post was up 3.94% after the government announced it would sell around $12bn worth of stock, despite markets watchers pointing out the company’s limited growth potential.

Fast Retailing was another riser, finishing ahead 4.54% after Deutsche Bank upgraded the Uniqlo owner to ‘buy’.

On the mainland, the Shanghai Composite was up 0.11% at 3,380.29, and the smaller, technology-heavy Shenzhen Composite lost 0.28% to 1,986.21.

The People’s Bank of China broke renminbi’s 11-day rally, setting the onshore yuan’s loose peg at CNY 6.5277 against the dollar.

It allows the onshore currency to trade at 2% above or below the daily loose peg.

South Korea’s Kospi finished up 0.27% at 2,365.47, while the Hang Seng Index in Hong Kong eked out 0.06% gains to 27,972.24.

It was a mixed picture for blue chip stocks in Seoul, however, with Samsung Electronics softening 0.4% while SK Hynix finished 1.22% above the waterline.

On the geopolitical front, Korea was still in the peripheral vision of investors after the United Nations Security Council voted to increase sanctions against Pyongyang.

Tensions had been high over the previous fortnight after North Korea conducted its sixth nuclear test, with the new sanctions including a limit on the crude oil the hermit state can import.

Oil prices were broadly flat through much of the Asian session, although they turned lower as Europe took the trading baton with Brent crude last down 0.13% at $53.77 and West Texas Intermediate off 0.48% at $47.84.

In Australia, the S&P/ASX 200 was 0.58% firmer at 5,746.44, led higher by its hefty financials subindex, which was up 1.3%.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 slipped 0.1% to 7,840.41, led lower by CBL Corporation, which was the worst performer for the second day in a row.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.02% at AUD 1.2453 and the Kiwi advancing 0.83% to NZD 1.3671.