Asia report: Most markets rise as airlines surge on lockdown easing
By Josh White
Date: Friday 05 Jun 2020
(Sharecast News) - Markets in Asia were mostly higher on Friday, with airlines ascending as investors placed their bets on a sector recovery amid the easing of coronavirus restrictions.
In Japan, the Nikkei 225 was up 0.74% at 22,863.73, as the yen weakened 0.1% against the dollar to last trade at JPY 109.26.
Of the major components on the benchmark index, automation specialist Fanuc was up 1.66%, Uniqlo owner Fast Retailing added 0.22%, and technology giant SoftBank Group was 0.87% firmer.
Airline plays were also on the up in Tokyo, with ANA Holdings ahead 7.06% and Japan Airlines rocketing 9.74%.
The broader Topix index added 0.54% by the end of trading, to close at 1,612.48.
On the mainland, the Shanghai Composite was 0.4% stronger at 2,930.80, and the smaller, technology-focussed Shenzhen Composite advanced 0.22% to 1,856.61.
South Korea's Kospi was 1.43% firmer at 2,181.87, while the Hang Seng Index in Hong Kong was ahead 1.66% at 24,770.41.
Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics adding 1.65% and chipmaker SK Hynix 3.08% firmer.
Airlines were also on the up on the Korean peninsula, with Asiana Airlines ahead 4.87% and Korean Air Lines 7.57% higher.
China Southern Airlines, meanwhile, surged 10.72% in Hong Kong.
Investor focus for much of the Asian session was on developments in Europe and the US overnight, after the European Central Bank announced a €600bn increase in its Pandemic Emergency Purchase Programme on Thursday afternoon.
In the US, the Labor Department reported 1.877 million Americans filing for unemployment last week, which was ahead of expectations for 1.775 million, as polled by Dow Jones.
Markets were now very much looking towards the US nonfarm payrolls report, due later in the global day.
"Today's May payrolls report is expected to see eight million additional jobs lost on top of the 20.5 million in April, though we can hope given the lower ADP number earlier this week, that we might see the unemployment rate peak shy of the 20% level, at 19.1%, or possibly a little lower, after the sharp rise to 14.7% seen in April," said CMC Markets analyst Michael Hewson.
"With certain sections of the US economy slowly reopening, there is a hope that we could start to see the unemployment rate start to plateau as more and more people return to work after being furloughed."
Oil prices were higher as the region entered the weekend, with Brent crude last up 2.38% at $40.94 per barrel, and West Texas Intermediate adding 1.68% to $38.04.
In Australia, the S&P/ASX 200 eked out gains of 0.12% to settle at 5,998.70, as Qantas Airways managed gains of 3.12% in Sydney.
Across the Tasman Sea, New Zealand's S&P/NZX 50 was the odd one out, falling 0.46% to 11,171.66.
Flag carrier Air New Zealand still joined the regional rise for its sector, however, adding 8.6% after it announced plans to slash another NZD 150m in costs.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.42% at AUD 1.4343, and the Kiwi advancing 0.48% to NZD 1.5397.
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