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Asia report: Markets rise on early Brexit deal hopes

By Josh White

Date: Thursday 15 Nov 2018

Asia report: Markets rise on early Brexit deal hopes

(Sharecast News) - Most markets in Asia finished in the green on Thursday, amid apparent optimism overnight that Theresa May's Brexit deal might actually make it through the bowels of Westminster Palace to 29 March next year.
In Japan, the Nikkei 225 was down 0.2% at 21,803.62, as the yen strengthened 0.14% against the dollar, to last trade at JPY 113.47.

Technology and telecoms behemoth SoftBank was the big loser on the Tokyo benchmark, falling 2.7%, with the broader Topix index also on the back foot, sliding 0.14% to close at 1,683.97.

On the mainland, the Shanghai Composite rose 1.36% to 2,668.17, and the smaller, technology-heavy Shenzhen Composite was up 1.45% at 1,398.40.

Sentiment was buoyant on the mainland, after three different US federal sources reportedly told media that Beijing had submitted a written response to recent White House demands for trade reforms between the two nations.

South Korea's Kospi improved 0.97% to settle at 2,088.06, while the Hang Seng Index in Hong Kong was 1.75% firmer at 26,103.34.

Internet giant Tencent was a leader in the special administrative region, jumping 5.8% after reporting better-than-expected earnings in its third quarter.

Sentiment in the region was given a boost earlier in the day, as UK prime minister Theresa May confirmed she had reached a draft Brexit agreement to take to her cabinet and Parliament.

She told media on Wednesday night UK time that she believed the agreement was the best that could be negotiated.

"The collective decision by Cabinet was that the government should agree the draft withdrawal agreement and the outlying political declaration," she said.

"This is a decisive step which enables us to move on and finalize the deal in the days ahead."

Things weren't quite so rosy as the Asian region went to bed, however, amid resignations from Cabinet and rumblings of a leadership contest within the Tory party.

Such movements were already predicted by analysts long before alarm clocks chirped in the British isles on Thursday.

"We still can't say with any confidence whether this deal, no deal, or indeed a second referendum, is now the most probable outcome to this ongoing saga," noted National Australia Bank head of foreign exchange strategy Ray Attrill.

Oil prices were mixed late in the Asian day, with Brent crude last up 0.51% at $66.46, while West Texas Intermediate fell 0.14% to $56.17 per barrel.

In Australia, the S&P/ASX 200 eked out gains of 0.06% to settle at 5,736.00, even as the hefty financials subindex dropped amid declines among the big four banks.

Australia and New Zealand Banking Group managed to tread the waterline, while Commonwealth Bank of Australia lost 0.51%, National Australia Bank slipped 0.21%, and Westpac Banking Corporation slid 0.43%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 joined the Nikkei on the downside, falling 0.02% to 8,825.89.

The Wellington benchmark was led lower by the country's biggest local power lines operator Vector, which lost 3%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.43% at AUD 1.3769, and the Kiwi advancing 0.12% to NZD 1.4694.

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