Asia report: Markets mixed amid fresh Brexit concerns
By Josh White
Date: Wednesday 16 Jan 2019
(Sharecast News) - Markets in Asia finished in a mixed state on Wednesday, as investors shrugged off a solid overnight session on Wall Street and instead focussed on renewed concerns around the UK's exit from the European Union.
In Japan, the Nikkei 225 was down 0.55% at 20,442.75, as the yen weakened 0.09% against the dollar to last trade at JPY 108.78.
The broader Topix index was 0.32% lower at 1,537.77.
On the mainland, the Shanghai Composite was unchanged at 2,570.42, and the smaller, technology-heavy Shenzhen Composite lost 0.12% to close at 1,321.52.
South Korea's Kospi was up 0.43% at 2,106.10, while the Hang Seng Index in Hong Kong improved 0.27% to 26,902.10.
Sentiment was generally higher on Tuesday, after Beijing signalled to markets that it would introduce further stimulus measures in response to concerns that China's domestic economy was slowing down.
But that buoyant mood dissipated late on Tuesday night London time after UK prime minister Theresa May suffered the worst defeat by a sitting government in the country's history as her Brexit deal with the EU failed to pass the House of Commons.
That initially led to a small rise for the pound, given most politicians in the country appear to be dead set on avoiding a no-deal - or 'disorderly' - Brexit.
"Sterling rallied following the defeat of the withdrawal agreement due to strong cross-party support to prevent a no deal from occurring on 29 March," noted analysts at ANZ Research.
However, ANZ's analysts wrote that the government was unlikely to achieve much in the next three working days, in which it was required to set out its new plan, given the general level of opposition to the Brexit deal.
Oil prices were lower as the region went to bed, with Brent crude last down 0.05% at $60.61 per barrel, and West Texas Intermediate losing 0.41% to $51.90.
In Australia, the S&P/ASX 200 rose 0.35% to 5,835.20, boosted by a 0.61% increase in the hefty financials subindex.
Across the Tasman Sea, New Zealand's S&P/NZX 50 added 0.7% to 9,027.44, led higher by specialist dairy products exporter A2 Milk, which was ahead 3.9%.
Both of the down under dollars were weaker on the greenback, with the Aussie last behind 0.41% at AUD 1.3943, and the Kiwi retreating 0.74% to NZD 1.4778.
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