Asia report: Stocks finished mixed as Wall Street rally ends

Asia-Pacific stock markets finished with a mixed performance Thursday, as initial enthusiasm from Wall Street's technology-driven rally faded.

Investors' attention was on the conclusion of Japan's spring wage negotiations, and the release of India's wholesale inflation data.

“In response to mixed signals from global markets, Asian stock markets are also experiencing mixed trading on Thursday,” said TickMill market analyst Patrick Munnelly.

“Traders are exercising caution and staying on the sidelines as they await key US retail sales, producer price inflation, and weekly jobless claims data later in the day, which could provide further insight into the outlook for interest rates.

“Although consumer inflation was slightly higher than expected, there remains optimism that the US Fed will reduce interest rates in June.”

Munnelly said the upcoming Federal Reserve monetary policy meeting on 19 and 20 March would be closely monitored for any indications of potential timing for a rate cut.

“Continuing its decline from the last three sessions, the Japanese market is slightly down in volatile trading on Thursday, in response to the mixed signals from global markets overnight.”

Nikkei manages small gains on mixed day for region

In Japan, the Nikkei 225 index climbed 0.29% to close at 38,807.38, while the broader Topix index saw a slightly stronger gain of 0.49% ending the day at 2,661.59.

The optimism came in the wake of the ‘shunto’ wage negotiations that ended on Wednesday, with preliminary reports suggesting significant wage increases from large firms.

Leading the gainers on Tokyo’s benchmark was Mitsubishi Materials, up 9.7%; Tokyo Electric Power Co, which advanced 6.76%; and Sumitomo Metal Mining, ahead 6.69%.

Conversely, China's stock markets faced downward pressure with the Shanghai Composite dropping 0.18% to 3,038.23 and the Shenzhen Component decreasing by 0.52% to 9,555.42.

On the downside in Shanghai were Henan Ancai Hi-tech and Hylink Digital Solution, with losses of 10.05% and 9.98%, respectively.

Hong Kong's Hang Seng Index also faced a tough session, declining 0.71% to 16,961.66.

The biotechnology sector was particularly hard hit, as WuXi Biologics and WuXi AppTec posted losses of 13.08% and 12.12%, alongside a 6.44% drop for Xinyi Solar Holdings.

South Korea's Kospi index managed a gain of 0.94% to 2,718.76, buoyed by performances from Hanjinkal and Samsung Heavy Industries, which soared 15.47% and 13.19%, respectively.

Australia's S&P/ASX 200 index slightly retreated by 0.2% to 7,713.60, while New Zealand's S&P/NZX 50 index remained nearly flat, decreasing by a mere 0.01% to 11,808.33.

Key losers in those markets included Eagers Automotive in Sydney and ANZ Group in Wellington, falling a respective 6.76% and 5.5%.

Currency markets saw minor adjustments, with the dollar last down 0.02% on the yen, trading at JPY 147.73.

The greenback was also weaker against its down under counterparts, falling 0.04% on the Aussie to AUD 1.5097, and retreating 0.2% from the Kiwi to NZD 1.6209.

In the commodities sector, Brent crude futures were last up 0.6% on ICE at $84.53 per barrel, and the NYMEX quote for West Texas Intermediate increased 0.8% to $80.36.

Big pension fund looking at ‘Korea discount’, India wholesale inflation slows

In economic headlines, South Korea's National Pension Service (NPS) voiced its support for the government's initiative to address the longstanding issue of the so-called ‘Korea discount’ during the day.

The Korea discount refers to the relatively lower valuation of South Korean companies compared to their international counterparts, attributed to factors such as opaque corporate governance and intricate shareholding structures prevalent among the nation's major family-run ‘chaebol’ conglomerates.

According to Reuters, the NPS - a major institutional investor - was closely monitoring the ‘Corporate Value-up Programme’ introduced by the Financial Services Commission in February.

The programme was designed to elevate corporate valuations within the South Korean market, enhancing shareholder returns and boosting stock prices.

NPS investment strategy director Lee Suc-won said the pension service would determine its asset allocation strategy following the unveiling of detailed plans for the reform initiative.

Elsewhere, India reported a more significant than expected slowdown in wholesale inflation for February, with the rate dropping to 0.20%, down from 0.27% in January and below the forecasted 0.25%.

The decline in inflation was attributed to rising prices in specific sectors such as food, crude petroleum and electricity, according the commerce and industry ministry.

Reporting by Josh White for Sharecast.com.