China shares finished at a three-year high Wednesday led by gains in brokerage stocks, while the Taiwanese market fell on expectations that a China-South Korea free-trade agreement could pressure the island’s exporters.
In Japan, the Nikkei 225 added 72.94 points, or 0.4%, to 17,197.05.
Investors continued to bid up the market on the possibility of snap elections and a delay in the planned national consumption tax increase originally expected next year.
The U.S. dollar traded as high as ¥115.88, compared with ¥115.80 in New York late Tuesday. It hit a seven-year high against the yen Tuesday, breaking through ¥116 for the first time since October 2007.
A stronger dollar is beneficial to Japanese exporters who pay costs in the local currency and repatriate dollar earnings.
In Hong Kong, the Hang Seng index hiked 129.90 points, or 0.6%, to 23,938.18.
Investors in Hong Kong also showed their enthusiasm ahead of the trading program’s launch. The Hang Seng Index was up 0.6%, with a third-straight day of gains. The Monday launch date of the Shanghai-Hong Kong Connect Program was announced Monday.
In Hong Kong, Tencent Holdings Ltd. was 1.3% higher ahead of its third-quarter earnings report after the close of the market Wednesday. The Chinese Internet games and communications company is expected to report a net profit of 6.15 billion yuan ($1 billion U.S.), up 58% year-over-year.
Gome Electrical Appliances Holdings Ltd. was down 6.6%, after the company said it would purchase a 5.4% stake in Chinese lender Huishang Bank Corporation Ltd. for more than 24 billion Hong Kong dollars ($3.1 billion U.S).
But the free-trade agreement between China and South Korea that was announced Monday had Taiwanese stocks closing lower.
Investors worry that Taiwanese exporters could lose out to South Korean competitors if South Korea’s relationship with China continues to improve.
Shares of Taiwan Semiconductor Manufacturing were down 1.6%, leading losses. Hon Hai Precision Industry Co. Ltd. was down 1.8%.
CHINA
Shanghai’s CSI 300 index recovered 35.71 points, or 1.4%, to 2,594.32
Citic Securities jumped 7.9% to 15.38 yuan, Haitong Securities gained 5.9% to 12.35 yuan and Huatai Securities rose 5.6% to 12.93 yuan. Brokerages are expected to be some of the biggest beneficiaries as increased trading and more investors add to their revenues.
In other markets;
Singapore’s Straits Times Index dipped 8.44 points, or 0.3%, to 3,283.71
The Taiex index in Taiwan plummeted 115.19 points, or 1.3%, to 8,918.95
Korea’s Kospi index moved higher 4.27 points, or 0.2%, to 1,967.27
New Zealand’s Exchange 50 descended 2.90 points, or 0.1%, to 5,487.89
Australia’s S&P/ASX 200 fell 54.05 points, or 1%, to 5,463.05
