Asia: Hang Seng paces gains on expectations of Shenzhen exchange link launch

Stronger than expected weekly unemployment data Stateside saw the yen weaken considerably, providing a boost for Japanese stocks.

The Nikkei 225 ended the session with gains of 0.83% to reach 19,732.92, while the dollar/yen bounced back, rising 0.57% to 119.87.

Japanese lender Mizuho guided towards net income of 630bn yen for the year ending in March, ahead of analysts’ forecasts. In parallel, the bank increased its dividend pay-out to 7.5 yen from 7 yen beforehand.

The Shanghai’s Composite Stock Exchange Index on the other hand came off by 1.59% to finish at 4,308.69.

Energy and utility stocks led the retreat amid worries that upcoming stock flotations will sap the market’s strength.

The Taiwanese and South Korean benchmarks also ended the day lower, surrendering 0.33% and 0.65% each in turn.

Hong Kong’s Hang Seng outperformed, notching up gains of 1.96% to end the day at 27,822.28 points.

That came on the back of speculation that authorities are getting closer to announcing when the Shenzhen exchange link will begin – possibly as soon as this weekend.

Shares of Hong Kong Exchanges & Clearing jumped by 4% on the back of that market chatter.