Asia’s major stock indexes went in different directions on the week’s final day of trading, with currency shifts, China’s economy and US interest rate bets all playing a part in swaying investor sentiment.
The dollar slumped to its lowest this year versus the yen while gold hit a record high, as the region’s traders ratcheted up bets for a super-sized Federal Reserve rate cut next week.
Japan’s Nikkei share average ended lower after a stronger yen weighed on export-oriented stocks, while gains in chip-related stocks limited losses.
Also on AF: US House Passes Bill to Limit China’s Access to EV Tax Credits
The Nikkei fell 0.68% to close at 36,581.76, after opening 0.13% higher. For the week, the index rose 1.2%. The broader Topix fell 0.82% to 2,571.14 and slipped 0.19% for the week.
The yen rose to its highest level since December 28 of 140.645 per dollar ahead of next week’s central bank bonanza, where the focus is on the US Federal Reserve and the size of its expected interest rate cut.
The Bank of Japan is expected to keep the rate unchanged at a policy meeting next week but the market expects another rate hike by the end of this year.
Mainland Chinese blue chips shed 0.42%, on expectations that more weak economic data will be released on Saturday.
The Shanghai Composite Index also dipped 0.48%, or 13.03 points, to 2,704.09, while the Shenzhen Composite Index on China’s second exchange retreated 1.08%, or 16.06 points, to 1,476.26.
Hong Kong stocks, however, jumped for a second day to a one-week high as mainland developers rallied on speculation about mortgage-rate cuts.
The Hang Seng Index added 0.75%, or 128.70 points, to end at 17,369.09, with its tech index gaining 0.13%.
Euro Zone rate Cut
Elsewhere across the region, in earlier trade, Sydney, Singapore, Seoul, Wellington, Taipei and Bangkok were in the green, although Mumbai dipped. MSCI’s broadest index of Asia-Pacific shares outside Japan rallied 0.48%.
Japan, mainland China and South Korea are all heading into long weekends, with Tokyo back on Tuesday, China on Wednesday and South Korea not until Thursday.
In currency, the dollar index, which measures the currency against the yen and five other major rivals, dropped to a one-week trough at 101.00. The euro added 0.07% to $1.1083, building on Thursday’s 0.57% advance after European Central Bank President Christine Lagarde pushed back on prospects of a rate cut in October, following a widely expected quarter-point reduction on Thursday.
Gold extended Thursday’s 1.9% climb to reach a fresh record of $2,570.03, buoyed by the dollar’s weakness.
Crude oil continued to climb after surging around 2% overnight, as producers assessed the impact on output after Hurricane Francine tore through the Gulf of Mexico.
US West Texas Intermediate crude futures rose 0.71% to $69.46 per barrel, building on Thursday’s 2.5% rally. Brent crude futures added 0.65% to $72.44, after a 1.9% jump in the previous session.
Key figures
Tokyo – Nikkei 225 < DOWN 0.68% at 36,581.76 (close)
Hong Kong – Hang Seng Index > UP 0.75% at 17,369.09 (close)
Shanghai – Composite < DOWN 0.48% at 2,704.09 (close)
London – FTSE 100 > UP 0.15% at 8,253.37 (0841 BST)
New York – Dow > UP 0.58% at 41,096.77 (Thursday close)
- Reuters with additional editing by Sean O’Meara
Read more:
US, EU Firms’ Profits, Confidence in China Continue to Sink
China Shadow Bank Zhongzhi’s Desperate Effort to Avoid Collapse
Taiwan Riding AI Wave as Exports Hit Record Monthly High
Nikkei Bounces Back on Weaker Yen, Tech Stocks Lift Hang Seng
