Asia report: Stocks mixed as BoJ stands pat on policy

Stock markets were mixed in Asia on Thursday, after the Bank of Japan sated expectations by sticking to its guns on monetary policy.

In Japan, the Nikkei 225 was up 0.44% at 27,803.00, as the yen weakened 0.36% against the dollar to last trade at JPY 138.71.

Robotics specialist Fanuc was up 1.97%, Uniqlo owner Fast Retailing was ahead 0.59%, and tech investing giant SoftBank Group eked out gains of 0.13%.

The broader Topix index was 0.21% firmer by the end of trading in Tokyo, settling at 1,950.59.

Japan’s central bank stood pat on its easy monetary policy in its latest decision, as was widely expected by markets.

The Bank of Japan did, however, hike its forecasts for inflation and softened its estimates for economic growth.

“The BoJ emphasised the level of uncertainty around its baseline forecasts, due to Covid, the war in Ukraine, commodity prices, and overseas demand and inflation,” said Craig Botham at Pantheon Macroeconomics.

“Its report tried not to linger on the question of the yen, noting only that exchange rates posed a risk, but that the risk could be to the upside or downside, and would need ‘due attention’.

“The BoJ has no wish to encourage market speculation over potential intervention.”

On the mainland, the Shanghai Composite was down 0.99% at 3,272.00, and the technology-centric Shenzhen Component was 0.94% weaker at 12,455.19.

South Korea’s Kospi added 0.93% to 2,409.16, while the Hang Seng Index in Hong Kong was off 1.51% to 20,574.63.

Korean carmaker Hyundai Motor closed flat, having jumped in earlier trading after the company beat earnings expectations.

Hyundai’s second-quarter revenue came in at KRW 36trn, while its net income rocketed 55.6% year-on-year to KRW 3trn.

The blue-chip technology stocks were on the front foot in Seoul, with Samsung Electronics up 2.15% and SK Hynix 0.49% firmer.

Oil prices were lower as the region went to bed, with Brent crude futures last down 3.96% on ICE at $102.69 per barrel, and the NYMEX quote for West Texas Intermediate falling 4.02% to $95.87.

In Australia, the S&P/ASX 200 was ahead 0.52% at 6,794.30, with Anglo-Australian mining giant Rio Tinto dragging on the gains as it fell 2.01%.

The company said earlier in the day that it would pay another AUD 613m to the Australian Taxation Office over an ongoing dispute, having already handed over AUD 378m.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 advanced 0.63% to 11,269.76, led by health testing company Pacific Edge for a second day in a row.

The company added 4% after it said a commercial agreement for its cancer tests had been “substantially completed” with the country’s southern public health region.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.25% at AUD 1.4555, and the Kiwi retreating 0.75% to NZD 1.6149.

Reporting by Josh White at Sharecast.com.