Asia report: Most markets higher as renminbi touches one-year low
Most markets in Asia ended a turbulent session in the green on Friday, as traders digested rare criticism of the Federal Reserve from a sitting US president, and renminbi briefly touched a one-year low.
In Japan, the Nikkei 225 was down 0.29% at 22,697.88, as the yen strengthened 0.06% against the dollar to last trade at JPY 112.40.
Steel producers were some of the worst performers in Tokyo after a drop in metal prices overnight, with JFE Holdings and Kobe Steel down 1.49% and 2.3% respectively.
On the mainland, the Shanghai Composite surged 2.04% to 2,829.15, and the smaller, technology-heavy Shenzhen Composite tacked on 1.12% to 1,593.30.
Before the open, the People’s Bank of China set the onshore yuan’s loose peg at CNY 6.7671 to the dollar - the loosest fix in a year - before it briefly traded as weak as CNY 6.8106.
It later pared almost all of its losses as the country’s big state banks sold off dollars, according to Reuters.
Hainan Airlines returned to trade after being in a halt since January, and absolutely tanked, almost hitting the 10% daily movement limit in Shanghai by falling 9.91%.
South Korea’s Kospi was 0.3% higher at 2,289.19, while the Hang Seng Index in Hong Kong managed gains of 0.76% to close at 28,244.48.
Samsung Electronics was a standout in Seoul, rising 1.17%, although its peers in the blue-chip technology space were otherwise mixed.
Trading was choppy for much of the session in the region, after a weaker finish on Wall Street overnight as earnings season continued stateside.
Investors were also busy digesting comments from Donald Trump with regards to the Fed, after the president told CNBC he was “not thrilled” with the central bank’s interest rate hikes.
“Because we go up and every time you go up they want to raise rates again,” he told the cable network.
“I don't really - I am not happy about it. But at the same time I'm letting them do what they feel is best.”
The firefighters in the White House press office came to the rescue some time later, stating that Trump did not mean to try and influence the independent decision-making of the Fed.
“Given his penchant for breaking with tradition, we are not surprised with the president’s comments,” noted Commonwealth Bank of Australia currency strategist Joseph Capurso.
“His comments are likely to add to financial market volatility, at least in the beginning.”
Oil prices were mixed, with Brent crude last up 0.28% to $72.78 per barrel, and West Texas Intermediate down 0.03% at $68.22.
In Australia, the S&P/ASX 200 was up 0.37% at 6,285.90, with most subindices in the green, although materials fell on the back of a fall in base metal prices.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.4% at 8,955.54, ld higher by medical equipment maker Fisher & Paykel Healthcare, which was ahead 2.1%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.08% at AUD 1.3585, and the Kiwi advancing 0.22% ot NZD 1.4804.