Asia markets edge higher as investors await earnings releases

The Nikkei 225 rose 0.12 percent in early trade although the broader Topix was off 0.09 percent.

Asian shares edged higher in early Monday trade as investors awaited quarterly results from regional corporates. Meanwhile, political developments in Spain continued to weigh on the euro.

Markets on the move

The Nikkei 225 rose 0.12 percent in early trade although the broader Topix was off 0.09 percent.

Japan retail sales for September increased 2.2 percent compared with one year ago, government data showed. That came in a touch below the 2.5 percent median forecast, Reuters said. Meanwhile, the Bank of Japan began its two-day meeting on Monday.

Across the Korean Strait, the Kospi tacked on 0.38 percent as tech and oil stocks notched gains: SK Hynix rose 2.3 percent and petroleum refinery company S-Oil was up 2.7 percent. Shares of Samsung Electronics climbed 2.03 percent ahead of the company's expected Tuesday earnings release in which it is forecast to announce record quarterly profit.

Early market movers also included a steep fall in the shares of Daewoo Shipbuilding and Marine Engineering which had just resumed trade on Monday following a lengthy suspension. Daewoo stock plunged 26.34 percent in early trade.

Down Under, the S&P/ASX 200 held just above the flat line, trading higher by 0.09 percent. The index had closed lower in the last session after the coalition government lost its parliamentary majority after Australia's deputy prime minister was disqualified due to his dual citizenship status.

Energy plays climbed following the rise in oil prices on Friday: Santos jumped 1.84 percent and Woodside was up 1.84 percent.

Notable names on the earnings calendar for Monday include HSBC, Bank of China, Nintendo and Kobe Steel.

Stocks on Wall Street closed higher on Friday, with the Nasdaq composite advancing 144.489 points in the session on strong quarterly earnings reports from big tech companies. The tech-heavy Nasdaq closed up 2.2 percent at 6,701.263.

The lead up

Markets have for days been keeping an eye on news about the next Federal Reserve chair. President Donald Trump reportedly favors nominating Federal Reserve Governor Jerome "Jay" Powell when current Chair Janet Yellen's term comes to an end next February. Trump is expected to reveal his decision this week.

Meanwhile, the US economy grew more quickly than expected in the third quarter. Data released Friday showed gross domestic product rose 3 percent, above the 2.5 percent forecast in a Reuters poll.

Elsewhere, the Spanish government dismissed Catalonia's parliament after it declared the region's independence on Friday. Spanish Prime Minister Mariano Rajoy announced regional elections would take place on Dec. 21.

On Sunday, hundreds of thousands of Catalans protested in Barcelona in support of Spanish unity.

The common currency traded mostly flat at USD 1.1605 at 8:02 a.m. HK/SIN after falling as low as USD 1.1573 in the Friday session. The euro had initially gained after Friday reports on Trump's Fed chair deliberations, but later gave up those gains during the session following news out of Spain.

The dollar index, which tracks the US currency against a basket of six currencies, was a touch firmer at 94.858. Against the yen, the dollar traded at 113.69.

Corporate news

Chinese automaker BYD said on Sunday that the company's profit was likely to decline by up to a fifth, Reuters reported. Competition is expected to increase in the electric and hybrid segment in which the company has heavily invested.

The commodities trade

Oil prices edged up after rising more than 2 percent on Friday when Saudi Arabia and Russia announced they supported extending an OPEC-led agreement to cut production.

Brent crude tacked on 0.17 percent to trade at USD 60.54 a barrel and US crude futures rose 0.2 percent to trade at USD 54.01.