Asia report: ASX 200 nears all-time high on mixed day for region

Asia-Pacific markets closed mixed on Friday as mainland Chinese stocks fell to their lowest levels since 2019, while Australian shares edged closer to an all-time high.

The Japanese yen strengthened, briefly touching JPY 140.62 against the dollar - its strongest intraday level since 28 December 2023.

“The yen has been a rollercoaster in the risk-on, risk-off game,” said SPI Asset Management managing partner Stephen Innes.

“However, it’s now better aligned with the narrowing gap between US rate cuts and Japanese rate hikes after higher US jobless claims support the current market rate cut structure.

“And don’t sleep on the Bank of Japan - Junko Nakagawa signalled that more rate hikes are on the horizon, with a 1% neutral rate in sight for next year.”

Innes noted that yen strength could cloud the outlook for Japanese stocks.

“Asian stocks are looking strong as we wrap up the week, with Wall Street’s momentum spilling over.

“The S&P 500 and Nasdaq both rose for the fourth straight day, and the Nasdaq is on track for its biggest weekly gain of the year.”

Japan markets fall on mixed day for region

In Japan, the Nikkei 225 declined by 0.68% to close at 36,581.76, and the Topix index fell 0.82% to 2,571.14.

Leading the losses on Tokyo’s benchmark were Astellas Pharma, which dropped 4.72%, Konami down 3.8%, and Ajinomoto decreasing by 3.61%.

Mainland Chinese markets continued their downward trajectory.

The Shanghai Composite lost 0.48% to end at 2,704.09, while the Shenzhen Component decreased by 0.88% to 7,983.55.

Dazhong Transportation Group plummeted 9.99%, Kunshan Kersen Science & Technology fell 9.98%, and Shanghai Wondertek Software declined 9.97%.

In Hong Kong, the Hang Seng Index bucked the regional trend, gaining 0.75% to close at 17,369.09.

Top performers included Zijin Mining Group, which rose 3.87%, Sino Biopharmaceutical up 3.54%, and Hansoh Pharmaceutical Group adding 3.49%.

South Korea's Kospi 100 index saw a slight decrease of 0.06%, finishing at 2,589.99.

Among the biggest losers were Amorepacific, down 6.2%, LG Household & Healthcare dropping 3.71%, and SK Hynix declining 3.55%.

The Australian S&P/ASX 200 index added 0.3% to reach 8,099.90, nearing an all-time high.

Mining stocks led the gains, with Perseus Mining surging 10.21%, West African Resources up 10.11%, and Capricorn Metals advancing 9.84%.

In New Zealand, the S&P/NZX 50 index edged up 0.1% to close at 12,832.55.

Pacific Edge was the top gainer with a 9.71% increase, followed by Fonterra Shareholders Fund up 2.83% and Skellerup Holdings rising 2.73%.

On the currency front, the dollar was last down 0.88% on the yen to trade at JPY 140.57, as it weekend 0.01% against the Kiwi to NZD 1.6174.

The greenback was, however, 0.13% stronger on the Aussie, last changing hands at AUD 1.4895.

Oil prices moved higher, with Brent crude futures last up 0.96% on ICE at $72.66 per barrel, and the NYMEX quote for West Texas Intermediate increasing 1.19% to $69.79.

Focus on US markets on quiet economic day for Asia

Amid a quiet economic calendar in the Asia-Pacific region on Thursday, investors turned their attention to Wall Street's robust performance overnight.

The US producer price index (PPI) - a key measure of wholesale inflation - increased 0.2% month-over-month in August, aligning with expectations from economists surveyed by Dow Jones.

On an annual basis, the headline PPI rose by 1.7%.

The figures represented the final major data release on the US economy before the Federal Reserve convenes next week.

Reporting by Josh White for Sharecast.com.