Asia report: Markets end mixed after struggling for direction

Asian markets finished mixed on Friday, as traders continued to assess their positions after the announcements from the Bank of Japan and the US Federal Reserve this week.

In Japan, the Nikkei 225 closed down 0.32% to 16,754.02, while the broader Topix lost 0.23% to 1,349.56.

Markets in the country were closed for a holiday on Thursday, but rose almost 2% on Wednesday after the BoJ confirmed it was standing pat on interest rates, but considering an overhaul of its monetary policy framework.

A relatively stronger yen put pressure on domestic stocks, as it broke into the 100-level against the greenback.

It weakened slightly after the close, however, and was last off 0.12% at JPY 100.88 per $1.

The major exporters finished mixed, with Honda down 2.37% and Toyota off 3,16%, while Nissan added 0.98% and Sony was up 0.8%.

Banking stocks lost ground in Tokyo, as investors collected their profits after the shares rallied following the BoJ’s announcement on Wednesday.

Mitsubishi UFJ fell 1.54%, Mizuho Financial was off 1.93% and SMFG fell 1.63%.

On the mainland, the Shanghai Composite lost 0.28% to finish at 3,033.79, while the Shenzhen Composite was off 0.5% to 2,008.12.

South Korea’s Kospi finished 0.21% higher at 2,054.07, with the Hang Seng Index in Hong Kong off 0.31% at 23,686.48.

Markets in the region bobbed above and below the line for much of the session, with a lack of any major economic data leaving them searching for direction.

“After a week of key risk events, Friday brings a breather to markets, with little in the way of significant data flow,” said National Australia Bank economist Tapas Strickland.

Focus is likely to return on Monday, as investors look to the first US presidential debate.

Oil prices were down during Asian trading, with Brent crude last down 1.28% to $47.05 per barrel and West Texas Intermediate off 1.69% at $45.55.

Australia’s S&P/ASX 200 managed to push 1.06% higher to 5,431.30, with the weighty financial subindex adding 1.15%, though the gold sector dragged, losing 2.08% during the session.

New Zealand shares also rose, with the S&P/NZX 50 adding 0.4% to 7,311.71, led by Ebos Group - up 2.7% - and insurance firm Tower - up 2.6%.

Tower had lost 49.5% of its share price value in the year-to-date, after disappointing first half results and the need to allocate an extra NZD 16m for claims arising from the 2010-2011 Christchurch earthquakes.

The down under dollars were both weaker against the greenback, with the Kiwi off 0.69% at NZD 1.3772 and the Aussie losing 0.23% to AUD 1.3113 per $1.