Major Asian indexes searched for direction on Monday as investors digested earnings reports and President Donald Trump’s tour of the region got underway.
U.S. stocks had closed higher on Friday despite a mixed jobs report for October as markets focused on strong earnings.
Japan’s Nikkei 225 rose 0.3 percent early in the session as markets re-opened for trade after a long weekend. Most automakers notched gains except for Mazda Motor, which declined 2.96 percent on a poorer-than-expected quarterly profit.
Minutes from the Bank of Japan released Monday showed most policymakers thought the central bank should keep its current policy guidelines, Reuters reported.
Across the Korean Strait, the Kospi came under slight pressure in early trade. The index slid 0.06 percent as a fall in blue-chip tech stocks weighed on the broader market: Samsung Electronics was off 0.21 percent and SK Hynix slid 1.07 percent. Cosmetics and oil stocks, however, notched gains.
Down Under, the S&P/ASX was flat, with gains in energy stocks offset by losses in the heavily-weighted financials sub-index.
Australia’s Westpac announced on Monday that its cash earnings rose 3 percent to 8.06 billion Australian dollars ($6.17 billion) for the year ending on Sept. 30. That was below the 4 percent rise forecast in a Reuters poll. Meanwhile, statutory net profit for the period rose 7 percent to A$7.99 billion ($6.11 billion). Westpac shares lagged other banking stocks to fall 2.46 percent.
Asian corporates on Monday’s earnings calendar included DBS, Sumitomo and Mitsubishi.
U.S. stocks closed at record levels on Friday, with Apple shares jumping in the session following its earnings beat. The Nasdaq composite surged 0.74 percent, or 49.49 points, to close at a record 6,764.44 on those results.
Data on Friday showed that a total 261,000 jobs were created in the U.S. in October, significantly below the 310,000 figure expected. The unemployment rate for the period, however, came in at 4.1 percent, a shade below the 4.2 percent forecast.
Elsewhere, several Saudi ministers and princes, including prominent investor Prince Alwaleed Bin Talal, were detained over the weekend as part of an anti-corruption probe in the country. Saudi Arabia’s stock market initially fell on Sunday in reaction to those developments, but had edged higher by the end of the session.
Also in focus in the region was Trump’s tour of Asia, with Japan the first of the five nations on the itinerary. On his arrival in Japan, Trump warned that “no dictator” ought to “ever underestimate American resolve.” The president will also visit South Korea, China, Vietnam and Philippines during his trip.
In other news, merger talks between telcos Sprint and T-Mobile have ceased, the companies announced on Saturday. Japan’s SoftBank, the parent of Sprint, is due to report earnings on Monday. SoftBank stock was down 2.15 percent in early trade.
The dollar broadly held onto gains made in the last session following Friday’s stateside data releases. The dollar index stood at 94.940 at 8:19 a.m. HK/SIN after touching as high at 95.015 on Friday.
Against the yen, the greenback firmed to trade at 114.21, above Friday’s close of 114.06.
Brent crude was up 0.31 percent at $62.26 a barrel and U.S. crude futures tacked on 0.27 percent to trade at $55.79.
The economic calendar for Monday is fairly light (all times in HK/SIN):
- 5:00 p.m.: Indonesia October consumer confidence
- Indonesia third-quarter GDP is also expected in the day
Source: cnbc china
Asian shares narrowly mixed as Trump's Asia tour gets rolling