Asia report: Markets lower as sterling drops against greenback
Markets in Asia finished lower on Monday, with many traders turning their attention to currencies and the tumbling sterling against the greenback.
AUD/USD
$0.6608
22:40 13/05/24
GBP/NZD
NZD2.0869
22:39 13/05/24
Hang Seng
19,115.06
10:20 13/05/24
Nikkei 225
38,179.46
09:45 13/05/24
USD/JPY
¥156.2320
22:40 13/05/24
In Japan, the Nikkei 225 was down 0.91% at 19,107.47, with a stronger yen putting the country’s exporters under pressure.
The yen did recede somewhat after Asian hours, though it remained at relatively strong levels, and was last 0.12% weaker at JPY 112.26.
Most of the major exporters closed lower, with Honda losing 1.55%, Sony off 0.92% and Toyota 0.65% softer.
Airbag maker Takata managed to rise 1.1%, against the benchmark’s trend, after a report emerged in the US that it was in the final stages of hiring attorney Kenneth Feinberg to deal with its $125m compensation fund for victims of its faulty airbags.
Feinberg carried experience in the field, having operated a similar compensation programme for General Motors, as well as managing compensation funds for victims of the 2010 BP Deepwater Horizon oil spill and the 9/11 terror attacks.
Takata had agreed with the US Department of Justice in January to enter a guilty plea to wire fraud in the US, paying a total of $1bn in penalties, as a result of its conduct surrounding sales of fatally defective airbag inflators.
It also confirmed the establishment of two compensation funds - the $125m for injured individuals, and $850m for carmakers to compensate the costs associated with airbag recalls and replacements.
Also in Japan, SoftBank shares were off 2.41%, after the telecom investment giant said it was finalising an investment in WeWork, with rumours the deal would be worth more than $3bn.
On the mainland, the Shanghai Composite lost 0.75% to finish at 3,229.17, while the Shenzhen Composite was down 0.58% at 1,988.77.
South Korea’s Kospi was off 0.41% at 2,085.52, while the Hang Seng Index in Hong Kong lost 0.17% to 23,925.05.
In Seoul, the jewel in the Samsung Group crown Samsung Electronics, closed down 0.42%, as the conglomerate continued to deal with the fallout of its involvement in the cash-for-influence scandal surrounding impeached President Park Geun-hye.
The company confirmed on Sunday that its next flagship smartphone, the Galaxy S8, would be unveiled on 29 March, after its latest flagship - the Galaxy Note 7 - suffered from spontaneous combustion problems and had to be recalled amid a public safety PR storm.
On the currency front, sterling did drop to levels as low as $1.2388 in early Asian hours, though it did recover some of its losses through the session.
It was hovering at levels above $1.25 in the prior session, and was last 0.24% weaker at $1.2410 per £1.
Oil prices were higher during Asian trading, with Brent crude last rising 0.57% to $56.31 and West Texas Intermediate adding 0.42% to $54.22 per barrel.
Australia’s S&P/ASX 200 finished 0.26% lower at 5,724.18, while New Zealand’s S&P/NZX 50 went against the regional trend and added 0.3% to 7,079.19.
The down under dollars were both weaker, with the Aussie last 0.02% weaker against the greenback at AUD 1.3036 and the Kiwi retreating 0.14% to NZD 1.3905 per $1.