Equities in Asia closed mixed on Wednesday as investors digest the dramatic dismissal of FBI Director James Comey in the U.S. and follow the inauguration of liberal candidate Moon Jae-in after his win in the South Korean presidential election.
The Nikkei 225 regained 57.09 points, or 0.3% to 19,900.09
Hong Kong’s Hang Seng Index gained 126.39 points, or 0.5%, to 25,015.42
In Japan, Toyota estimated that its operating profits this year would decline by 20%. Shares of the automaker closed 0.9% lower to trade at 6,081 yen ($53.40 U.S.) before the forecast was announced.
Softbank also reported annual earnings rose 13% on year after the close. Shares of the telecommunications company closed up 1.4% at 8,700 yen ($76.40 U.S).
Official results reflected that Moon, a candidate from the Democratic Party of Korea, had won 41.1% of the vote, according to Reuters. Moon will take on the presidency after the ouster of former South Korean President Park Geun-hye.
Political developments in the U.S. are also likely to weigh as FBI Director James Comey was fired by U.S. President Donald Trump unexpectedly.
Australian markets regained strength as investors digested the release of the federal budget yesterday after the market close.
After Trump's surprise dismissal of FBI Director Comey, the U.S. dollar also softened against the yen, trading at 113.85. The Aussie dollar strengthened slightly against the dollar to trade at $0.7358 U.S, but still off levels around $0.74 seen last week.
With the U.S. Federal Reserve likely to raise interest rates in June, the Aussie could break below $0.70 U.S. if traders realize a third rate hike is on the cards
The Australian government forecast an A$7.4 billion ($5.4-billion U.S.) surplus for fiscal year 2020/21 and announced it would be raising taxes on banks in its bid to "re-set" the Australian budget yesterday.
Shares of major Australian banks closed mixed after falling more than 1% in early trade following the news of the bank levy. Westpac was down 0.7% at A$32.65 a stock, Commonwealth Bank was 0.4% lower at A$81.73 and National Australia Bank fell 0.7% to trade at A$32.20.
CHINA
Shanghai’s CSI 300 dipped 14.83 points, or 0.4%, to 3,337.70
In economic news, China Consumer Price Index data for the month of April rose 1.2% on year. This was higher than the 1.1% projected by analysts. Producer Price Index gained 6.4% compared to the 6.9% forecast.
In other markets
Markets in Singapore are closed today.
In Taiwan, the Taiex Index recovered 52.84 points, or 0.5%, to 9,968.32
In Korea, the Kospi index deducted 22.64 points, or 1%, to 2,270.12
In New Zealand, the NZX 50 gained 12.08 points, or 0.2%, to 7,424.20
In Australia, the ASX 200 vaulted 35.54 points, or 0.6%, to 5,875.44
