Asia report: Markets finish quiet week mixed as Japan, China remain closed

Asian markets were mixed after another quiet session on Friday, after the major bourses on Wall Street fell into the red overnight as investors continued to digest recent comments from Fed chair Jerome Powell.

Traders in both mainland China and Japan continued to enjoy their extended holidays, with markets in those countries still closed.

The yen was last 0.02% stronger on the dollar, trading at JPY 111.49.

South Korea’s Kospi was down 0.74% at 2,196.32, while the Hang Seng Index in Hong Kong added 0.46% to settle at 30,081.55.

Hong Kong-listed shares of Anglo-Asian banking giant HSBC were up 2.85%, after the company beat expectations on its first quarter earnings.

The blue-chip technology stocks were in the red in Seoul, with Samsung Electronics down 1.31% and SK Hynix off 0.37%.

Sentiment was wearing thin early in the Asian day, after the major indices in New York all ended in the red overnight.

That came as investors still dealt with Jerome Powell’s comments on Wednesday that the recent lack of inflation pressure in the US was “transitory”, suggesting a cut to the central bank’s interest rate targets may not be as imminent as investors were hoping.

“The Fed is still sitting on their hands due to lacklustre inflation,” said London Capital Group head of research Jasper Lawler.

“However, Fed Chair Jerome Powell saying that low inflation factors are most likely transitory put to bed ideas of a rate cut.

“The market [is] starting to accept that the period of lower interest rates for longer will slowly be coming to an end.”

Oil prices were lower as the region entered the weekend, with Brent crude last down 0.5% at $70.40 per barrel, and West Texas Intermediate off 0.16% at $61.71.

In Australia, the S&P/ASX 200 slipped 0.04% to end its trading day at 6,335.80, while across the Tasman Sea, New Zealand’s S&P/NZX 50 fell from its record high, losing 0.27% to settle at 10,058.08.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.11% at AUD 1.4300, and the Kiwi retreating 0.03% to NZD 1.5117.