Asia report: Markets mixed as Japanese firms condemn no-deal Brexit
Markets in Asia finished mixed on Wednesday, with traders hanging out for UK Prime Minister Theresa May’s formal letter of resignation to the European Union.
AUD/USD
$0.6533
23:03 26/04/24
GBP/NZD
NZD2.1025
23:53 26/04/24
Hang Seng
17,651.15
10:20 26/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥158.3270
01:54 27/04/24
The Nikkei 225 finished up 0.08% at 19,217.48, after bobbing above and below the line for much of the session.
Fresh official data was released during the session, showing a very marginal 0.1% climb in retail sales year-on-year for February.
That was significantly lower than the 1% growth seen in January, and led to chatter about the serious lack of price inflation in the domestic economy.
Toshiba shares were up 1.01%, as its failed acquisition in the US - nuclear developer Westinghouse - was set to file for bankruptcy stateside in a bid to stem its losses.
The yen was stronger, last moving 0.17% closer to the dollar at JPY 110.96 per $1.
On the mainland, the Shanghai Composite was 0.36% lower at 3,241.31, while the Shenzhen Composite was off 0.73% at 2,019.39.
South Korea’s Kospi was up 0.17% at 2,166.98, while Hong Kong’s Hang Seng Index was 0.19% higher at 24,392.05.
Seoul’s technology heavyweight Samsung Electronics was 0.72% firmer ahead of the expected launch of its Galaxy S8 smartphone in New York later on Wednesday.
Eyes were on Europe, as Prime Minister May signed the letter formally invoking Article 50 of the Lisbon Treaty on Tuesday evening.
It was being delivered to European Council President Donald Tusk on Wednesday afternoon, at which point a two-year period of negotiations would begin, after which the UK would leave the EU with or without a deal.
“The triggering of Article 50 is unlikely to create an immediate sea of change,” noted Westpac Institutional Bank director Tim Riddell.
“This is the start of the beginning of the negotiations.
“Once initial bargaining position details start to ping between EU and U.K. and are dissected by the media and markets, the enormity of the task ahead may start to weigh confidence and markets.”
Japanese business group Keidanren, which boasts members including Hitachi and Toyota, was one of the loudest Asian voices responding to the triggering of Article 50.
It was reportedly preparing a response, countering Prime Minister May’s argument that “no [Brexit] deal is better than a bad deal”.
Oil prices were higher during Asian hours, with Brent crude last up 0.6% at $51.64 per barrel and West Texas Intermediate adding 0.49% to $48.61.
Australia’s S&P/ASX 200 was up 0.9% to 5,873.52, as the cleanup began in the wake of Cyclone Debbie, which hit northern areas of Queensland earlier in the week.
Winds of more than 160 mph battered coastal towns and tourist resorts along the Great Barrier Reef, with the federal government sending Australian Army troops alongside emergency services to the affected areas.
New Zealand’s S&P/NZX 50 added 1% to finish at 7,133.56, led higher by milk and baby food exporter A2 Milk, which was up 3.9%.
The down under dollars were both stronger against the greenback, with the Aussie last ahead 0.28% at AUD 1.3062 and the Kiwi advancing 0.17% to NZD 1.4232 to the $1.