Dipo Olowookere
By Investors Hub
Asian stocks ended mostly higher on Thursday as upbeat U.S. earnings news helped offset investor concerns surrounding Brexit and the U.S.-China trade war.
While luxury electric car maker Tesla reported a surprise third-quarter profit, software giant Microsoft’s quarterly earnings were boosted by cloud and Office revenues.
Chinese stocks closed on a flat note as caution crept in ahead of a crucial meeting of the ruling Communist Party next week.
The benchmark Shanghai Composite Index finished marginally lower at 2,940.92, while Hong Kong’s Hang Seng Index gained 0.9 percent to close at 26,797.95.
Japanese shares hit over a one-year high as investors lapped up technology stocks on hopes for improved earnings following Microsoft’s stronger than expected sales forecasts for its cloud computing services. A weaker yen also helped underpin investor sentiment.
The Nikkei 225 Index climbed 125.22 points, or 0.6 percent, to 22,750.60, while the broader Topix closed 0.3 percent higher at 1,643.74. Tokyo Electron rallied 2.2 percent and Screen Holdings added 1.3 percent.
Pharmaceutical company Eisai Co soared 15.3 percent after it reached an agreement with its U.S. partner Biogen Inc. to revive plans to seek U.S. approval for an Alzheimer’s treatment.
Japan Display jumped 6.8 percent on a Nikkei report that tech giant Apple will be among a group of backers expected to provide as much as 40 billion yen in support for the troubled screen maker.
Softbank dropped 2.9 percent on continued worries that its finances will weaken due to its bailout of office-space sharing startup WeWork.
On the data front, Japan’s private sector contracted in October as a typhoon disrupted service sector activity, survey results from IHS Markit showed.
The Jibun Bank flash composite output index fell to 49.8 from 51.5 in September. The manufacturing PMI came in at 48.5 versus 48.9 in September.
Australian markets eked out modest gains as higher commodity prices helped lift resource stocks. The benchmark S&P/ASX 200 Index rose 20.50 points, or 0.3 percent, to 6,693.60, while the broader All Ordinaries Index ended up 18.50 points, or 0.3 percent, at 6,796.70.
Mining heavyweight BHP climbed 1 percent and Rio Tinto added 0.7 percent after an increase in copper and iron ore prices. Smaller rival Fortescue Metals Group gained half a percent after reporting a rise in first quarter shipments.
Energy stocks such as Santos and Woodside Petroleum jumped over 2 percent after oil prices rose sharply on Wednesday to reach one-month highs following a surprise draw in US crude inventories.
Electronics retailer JB Hi-Fi soared 6.8 percent as it posted strong sales in the July-September period.
AMP rose 1.1 percent. The wealth manager said third-quarter net cash outflows at its Australian wealth management unit rose more than 30 percent amid the fallout of the financial services royal commission.
Qantas Airways tumbled 3.7 percent after the airline reported lower revenue from its domestic routes at its budget carrier Jetstar. Gold miner Newcrest Mining dropped 1.6 percent on reporting weaker gold output in the first quarter.
Australia’s private sector logged weaker growth in October, survey data from IHS Markit showed. The Commonwealth Bank of Australia Flash Composite Output Index dropped to 50.7 from 52.0 in September, reflecting a weaker rise in services activity.
Seoul stocks edged higher as SK Hynix’s third quarter profit beat expectations, raising hopes of a recovery in the chip making industry. The benchmark Kospi inched up 5.04 points, or 0.2 percent, to 2,085.66. while shares of SK Hynix, the world’s second-largest memory chipmaker, jumped 3 percent.
Investors shrugged off preliminary data from the Bank of Korea showing the South Korean economy expanded at a slower pace in the third quarter amid heightened global uncertainties.
Gross domestic product grew 0.4 percent sequentially after rising 1 percent in the second quarter. GDP was forecast to expand 0.5 percent. On a yearly basis, Asia’s fourth-largest economy maintained 2 percent growth, in line with expectations.
