Asia-Pacific stocks mixed; Kakao Pay shares soar in South Korea debut

Key Points

• Shares of Kakao Pay surged in their Wednesday South Korea debut as they more than doubled from their issue price of 90,000 Korean won. The stock was last trading around 108% higher than its issue price.

• A private survey released Wednesday showed growing Chinese services activity in October, with the Caixin/Markit services Purchasing Managers’ Index coming in at 53.8, rising from September’s reading of 53.4.
• The Federal Reserve concludes its two-day meeting on Wednesday stateside, with investors watching out for details surrounding any scaling back of the amount of bonds the central bank buys each month.

SINGAPORE — Shares in Asia-Pacific were mixed in Wednesday morning trade as investors look ahead to the end of the US Fed two-day meeting for clues on tapering.

The S&P/ASX 200 in Australia led gains among the region’s major markets as it jumped about 1.2%, with shares of Commonwealth Bank of Australia and BHP rising at least 1% each.

In South Korea, the Kospi declined 0.72%. Shares of Kakao Pay surged in their Wednesday debut as they more than doubled from their issue price of 90,000 Korean won. The stock was last trading around 108% higher than its issue price.

Kakao Games also surged 3.94%, while Kakao Corp shares dipped 1.56% and Kakao Bank dropped 4.68%.

Elsewhere, mainland Chinese stocks nudged higher, with the Shanghai composite hovering above the flatline while the Shenzhen component climbed 0.314%. Hong Kong’s Hang Seng index stood little changed.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.1% higher.

Markets in Japan are closed on Wednesday for a holiday.

The Federal Reserve concludes its two-day meeting on Wednesday stateside, with investors watching out for details surrounding any scaling back of the amount of bonds the central bank buys each month.

China services activity for October

A private survey released Wednesday showed growing Chinese services activity in October, with the Caixin/Markit services Purchasing Managers’ Index coming in at 53.8, rising from September’s reading of 53.4.

China’s official non-manufacturing PMI for October came in at 52.4 over the weekend, a decline from the September reading of 53.2.

PMI readings below 50 represent contraction while those above that level signify expansion. PMI readings are sequential and represent month-on-month expansion or contraction.

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Wall Street rises to record highs again

Overnight on Wall Street, the S&P 500 climbed 0.37% to 4,630.65 while the Dow Jones Industrial Average advanced 138.79 points to 36,052.63. The Nasdaq Composite rose 0.34% to 15,649.60.

Tuesday marked the third session in a row where all three major averages stateside closed at a record.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	29520.9	-126.18	-0.43
.HSI	Hang Seng Index	*HSI	24849.54	-250.13	-1
.AXJO	S&P/ASX 200	*ASX 200	7384.3	60	0.82
.SSEC	Shanghai	*SHANGHAI	3492.46	-13.17	-0.38
.KS11	KOSPI Index	*KOSPI	2975.75	-37.74	-1.25
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	10185.61	-47.51	-0.46

Oil prices drop more than 1%

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 1.42% to $83.52 per barrel. US crude futures dropped 1.75% to $82.44 per barrel.

The US dollar index, which tracks the greenback against a basket of its peers, was at 94.085 after a recent climb from levels below 93.9.

The Japanese yen traded at 113.91 per dollar, weaker than levels below 113.6 seen against the greenback yesterday. The Australian dollar changed hands at $0.7435 after yesterday’s drop from above $0.752.

Source : CNBC