Asia: Markets up awaiting US data, Australia lower on bank fund raising fears
Asian markets finished higher on Friday with investors looking towards US jobs data for an indication on the potential timing of a rate rise from the Federal Reserve.
Hang Seng
23,005.63
10:20 04/10/24
Nikkei 225
39,485.19
09:45 04/10/24
In Japan, the Nikkei closed up 0.29% at 20,725 after the Bank of Japan maintained its positive stance on inflation, saying that it could reach 2% inflation next year without taking extra stimulus measures despite a slowing economy.
The Bank of Japan’s policy board voted 8-1 to maintain its main policy of spending 80trln yen a year. It also said the Japanese economy “continues to recover moderately.”
The US dollar was trading at 124.70 yen, against 124.88 on Thursday.
China’s Shanghai Composite Index rose 2.26% to 3744.21, with reports suggesting Chinese funds are ready to enter the market for a buying spree helped to boost sentiment.
The Chinese government agency in charge of buying stocks to prop up the markets is seeking an additional 2trln yuan ($322 billion) in funds, according to a Bloomberg report.
Hong Kong’s Hang Seng, followed the Chinese trend and closed 0.73% higher. Singapore’s Straits Times Index closed up 0.18% at 3197 points.
In Australia, however, falling bank shares created sharp losses across the market.
The ASX 200 fell 2.41% to 5474.8, the third straight day of losses, led by fears the big banks will have to raise more capital to meet potential mortgage loan losses.
Australia and New Zealand Bank (ANZ) said on Thursday it was raising AUD$3bn to meet new capital ratio rules.
Shares in ANZ fell 7.5%. National Australia Bank fell 2.2%, Westpac 3.26% and Commonwealth Bank 3.84%.
Oil stocks also declined on the back of lower crude prices.