Asia report: Markets mixed as traders await US data

Asian markets ended Friday mixed, with traders keeping their wallets firmly in their back pockets ahead of the key US nonfarm payrolls, due well after the region went to bed.

In Japan, the Nikkei 225 was flat at 16,925.68, down 0.01%, while the yen stubbornly clung to the 103 level against the greenback.

It was last 0.46% weaker at JPY 103.70 per $1.

On the mainland, the Shanghai Composite was up 0.14% at 3,067.49, while the Shenzhen Composite shed 0.4% to 2,009.29.

In South Korea, the Kospi finished up 0.28% at 2,038.31, while Hong Kong’s Hang Seng Index added 0.45% to finish at 23,266.70.

Embattled shipping line Hanjin Shipping remained suspended in Seoul on Friday, after the firm filed for receivership on Wednesday.

“At this current point in time, we are not sure whether Hanjin Shipping will continue to operate under court-receivership or file for bankruptcy and assets will be liquidated,” noted Kiwoom Securities global strategist Daniel Yoo.

Its stock had traded near KRW 1,800 early in the week, but it was suspended at KRW 1,240 after a sharp drop.

Volumes were noticeably lower during the trading day ahead of the nonfarm payrolls, which will give traders a clue as to when the US Federal Reserve might hike interest rates again.

The Fed has consistently insisted the timing would be dependent on economic data, with chair Janet Yellen describing the economy positively last week.

“Traders tend to take less risk ahead of the nonfarm payrolls,” said CMC Markets Singapore market analyst Margaret Yang.

“If the actual data turns out to be a big miss, enthusiasm on the September rate hike will dampen, and the dollar's rally will probably lapse.”

Oil prices were rebounding after dropping sharply earlier in the week, off the back of a surprise uptick in US crude stockpiles according to the Energy Information Administration.

Brent crude was last up 0.37% at $45.62 per barrel, and West Texas Intermediate also added 0.37% at $43.32.

Australia’s benchmark S&P/ASX 200 lost 0.79% to close at 5,372.80, with the majority of its subindexes losing out by the end of the day.

The energy and materials sectors, which were hit particularly hard on Thursday, bucked the trend on Friday and closed up 0.18% and 0.35% respectively.

In New Zealand, the S&P/NZX 50 was up 0.04% at 7,426.11, with resins giant Nuplex adding 1.9%.

The company confirmed its takeover by Allnex Belgium had been given the all clear by European competition authorities in Europe.

On the currency front, the down under dollars were mixed, with the Aussie last 0.17% weaker at AUD 1.3264 and the Kiwi strengthening 0.12% to NZD 1.3717 per $1.