Asia report: Markets finish Friday mostly higher

Most Asian markets finished Friday higher, as investors held their breath for fresh jobs figures out of the US as an indicator on the Federal Reserve’s likely course of action.

In Japan, the Nikkei 225 finished up 0.48% at 16,642.23, breaking out of a two-day rut.

The yen was stronger for much of the session, following its break below JPY 109 on Thursday, though it lost some ground after markets closed and was last 0.02% weaker at JPY 108.89 per USD.

Fast Retailing was ahead 6.88% by the end of trading, after its global fashion chain Uniqlo reported a 5.9% rise in domestic sales in May against the same month last year.

Price-adjusted real wage data for April was also released during the session, which suggested wage increases were slowing in the groaning economy.

Tokyo’s attempts to boost domestic consumption and inflation are reliant on wage growth to succeed.

Services activity expanded in May, however, with a Markit/Nikkei survey of the sector in Japan bringing in a reading of 50.3, against 49.3 in April on a seasonally-adjusted basis.

On the mainland, markets reversed some earlier gains as traders reacted to a fall in the unofficial Caixin Markit services purchasing managers index for May, to 51.2 from 51.8.

The Shanghai Composite still managed a 0.44% rise to 2,938.18, and the Shenzhen Composite finished up 0.53% to 1,914.81.

In South Korea, the Kospi added just 0.04% to finish at 1,985.84, while Hong Kong’s Hang Seng Index gained 0.42% to 20,947.24.

Singapore-incorporated Noble Group managed a 13.33% drop during the session, touching its lowest share price since 2003, after announcing a fully-underwritten $400m rights issue.

The company - which has been dogged by an accounting dispute - said the issue is designed to “improve the group’s financial flexibility.”

Chairman Richard Elman also confirmed he would step down within 12 months, with the search for a successor underway.

On the economic front, US nonfarm payrolls were due to come out during US hours on Friday, along with factory orders, ISM services and trade.

The consensus estimate is for the nonfarms to come in weaker than April at 164,000, with the unemployment rate at 4.9%.

Traders will be watching the data as an indicator of the Fed’s likely moves on interest rates at its next meeting, after some surprisingly hawkish rhetoric from the FOMC recently.

Crude prices brushed off the immediate losses from OPEC’s decision on Thursday not to set an output limit, with US Energy Information Administration data overnight showing a weekly fall in domestic stockpiles.

Brent crude was last up 0.1% at $50.09 per barrel and West Texas Intermediate added 0.102% to $49.22.

In Australia, the S&P/ASX 200 finished up 0.76% at 5,318.90, with two of the big subindexes logging good growth - materials by 1.15% and financials up 0.7%.

The Sydney benchmark broke a seven-week winning streak on a weekly basis, however, falling 1.6% in the five trading days to Friday.

“Australian shares were weighed down by a fall in the iron ore price and worries that stronger-than-expected GDP growth means reduced prospects for Reserve Bank rate cuts,” AMP Capital chief economist Shane Oliver was quoted as saying by the Sydney Morning Herald.

In New Zealand, the S&P/NZX 50 rose again by 0.3% to 7,024.38, led by a bounceback from Steel & Tube, which rose 7.1%.

The firm hit a 15-year low on Thursday after revealing it was talking to “multiple agencies” locally and in China over faulty pile casing, that was to be used for a major highway project in the Waikato region.

Both of the down under dollars surged ahead against the greenback, with the Kiwi moving 0.37% closer at NZD 1.4631 per USD and the Aussie 0.18% to sit at AUD 1.3808.