Asia report: Markets mixed as investors await US jobs data

Markets in Asia finished Friday mixed, as traders kept their wallets in their pockets ahead of the key non-farm payrolls data in the US.

Japan’s Nikkei 225 was flat, closing 0.44 points lower at 16,254.45, with morning gains slipping from its grip in the afternoon, bringing losses for the week to 2%.

Stocks in the country had sold off this week as the yen strengthened, over disappointment with the first round of stimulus measures passed as part of prime minister Shinzo Abe’s big package.

The yield on the benchmark 10-year Japanese government bond fell to -0.089%, from -0.077% on Thursday.

Once again, the yen grew stronger, and it was last 0.26% ahead on the greenback at JPY 100.96 per $1.

On the corporate front, shares in imaging and electronics giant Nikon added 4.39%, paring some earlier gains of around 8%, after it posted its first quarter earnings.

Reported net profit improved 176.2% to JPY 11.49bn, with the firm leaving its full-year profit forecast at JPY 30bn.

On the mainland, the Shanghai Composite finished down 0.18% at 2,977, while the Shenzhen Composite lost 0.37% to 1,941.60.

In Korea, the Kospi added 0.9% to 2,017.94, while Hong Kong’s Hang Seng Index rose 1.44% to 22,146.09.

Oil prices were weaker during Asian trading, with Brent crude last down 0.96% at $43.87 per barrel and West Texas Intermediate losing 0.82% at $41.59.

The Bank of England’s first rate cut in more than seven years had a small effect on the market, with the central bank also slashing its growth forecasts and adopting a new Term Funding Scheme weapon in its monetary policy arsenal.

“The most important development overnight is the high expectations for global monetary and fiscal easing are steadily being met,” said IG market analyst Angus Nicholson.

In Australia, the S&P/ASX 200 finished up 0.39% at 5,497.40, though it booked a loss for the week of 1.17%.

It was bolstered by the energy and materials subindexes on Friday, which advanced 1.19% and 1.73% respectively.

Airline Virgin Australia posted a loss of AUD 224.7m for the year to 30 June, blaming pre-tax restructuring charges which it had not previously flagged.

Underlying profit before tax was AUD 41m, in line with guidance and up AUD 90.1m year-on-year.

Shares in the carrier finished up 2.08% in Sydney.

Of the major energy players, Santos was up 1.53% and Woodside Petroleum gained 0.98%.

In New Zealand, the S&P/NZX 50 rose for a second day running, by 0.1% to 7,308.41.

Specialist dairy exporter The A2 Milk Company lead the index higher, gaining 2% as investors continued to react to bullish expectations for the full-year from the firm.

The down under dollars were both stronger against the greenback, with the Aussie last 0.4% ahead at AUD 1.3057, and the Kiwi strengthening 0.53% at NZD 1.3869.