Asia report: Most markets fall as Bank of Korea trims rates

Asia-Pacific markets mostly fell on Friday, with Chinese stocks leading declines, as investors awaited a key policy briefing and digested US inflation data that weighed on Wall Street overnight.

Market participants were also looking ahead to a press conference in Beijing on Saturday, where Chinese authorities were expected to unwrap the details of their economic stimulus plans.

“Mainland China benchmarks are declining, on track to post their first weekly losses in five weeks as the markets await potential fiscal stimulus announcements on Saturday,” said Patrick Munnelly at TickMill.

“Markets anticipate Beijing to unveil two to three trillion yuan in new spending, but there are concerns about whether it will materialise, following a similar letdown from policymakers' briefing earlier this week.

“The Japanese market has continued its advance, registering a 0.5% gain.”

Munnelly noted that the Bank of Japan reported that the M2 money stock in Japan increased by 1.3% year-on-year in September, reaching JPY 1,252trn.

“This figure remained unchanged from August, slightly below the expected 1.5% growth.

“On a monthly basis, the M2 money stock rose by 1.0%, accelerating from the previous month's 0.6% increase.”

Most markets follow Wall Street indices lower

China's Shanghai Composite dropped 2.55% to 3,217.74, while the Shenzhen Component tumbled 3.92% to 10,060.74.

Beijing Piesat Information Technology, Tianfeng Securities, and Shanghai Moons Electric were among the hardest hit, each losing over 10%.

In Japan, the Nikkei 225 edged up 0.57% to 39,605.80, supported by a 6.09% surge in Fast Retailing shares after the Uniqlo parent reported strong earnings.

Its revenue for the financial year through August rose 12%, surpassing JPY 3trn for the first time, while operating profit also beat expectations.

However, the broader Topix index fell 0.24% in Tokyo, to settle at 2,706.20.

South Korea’s Kospi gained slightly, rising 0.1% to 2,605.07, driven by a 7.68% jump in SK Biopharmaceuticals.

Australia's S&P/ASX 200 slipped 0.1% to 8,214.50, weighed down by losses in ZIP Co and Light & Wonder.

Meanwhile, New Zealand's S&P/NZX 50 outperformed with a 0.71% gain, reaching 12,845.64, as Scales Corporation and NZX shares advanced.

Markets in Hong Kong were closed for the Double Ninth Festival holiday.

In currency markets, the dollar was last up 0.2% on the yen to trade at JPY 148.87.

The greenback did dip against its down under counterparts, however, slipping 0.01% on the Aussie to AUD 1.4838, and retreating 0.04% from the Kiwi to change hands at NZD 1.6406.

Oil prices also slid, with Brent crude futures last down 0.82% on ICE at $78.75 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.79% to $75.25.

Bank of Korea trims interest rates, investors look to China press conference

In economic news, South Korea's central bank reduced its benchmark interest rate by 25 basis points to 3.25% on Friday, marking its first rate cut since it started raising rates in August 2021.

The Bank of Korea pointed to signs of inflation stabilising, with the rate falling to 1.6% in September - its lowest level in over three years.

It also noted that household debt growth had slowed, and risks in the foreign exchange market had eased.

Analysts expected the BoK to continue gradually adjusting its monetary policy in the coming quarters.

In China, attention was meanwhile focussed on a press conference by the Ministry of Finance, scheduled for Saturday at 1000 local time (0300 BST).

The briefing was expected to introduce new stimulus measures as Beijing aimed to bolster economic growth.

While Saturday will be a working day in China, financial markets will remain closed.

Reporting by Josh White for Sharecast.com.