Asia report: Aussie stocks jump as yen languishes

Japan's equity markets took the hardest hit as the yen remained near 34-year lows against the dollar, while Australia’s benchmark index reached a record high during the session.

“Asian stock markets are experiencing a mix of trading on Thursday, as they respond to the generally positive trends in global markets from the previous day,” said TickMill market analyst Patrick Munnelly.

“Some traders are taking profits following the recent market strength, while also waiting cautiously for key US inflation data and Fed chair Jerome Powell's speech, as the markets will be closed on Good Friday.”

Munnelly said that at the same time, there was an “optimistic atmosphere” as several central banks were expected to begin cutting rates in the second half of the year.

“The Asian equity gauge saw minimal changes as gains in Hong Kong and mainland Chinese equities balanced out losses in Japan.”

Australia leads gains on mixed day for region

In Japan, the Nikkei 225 index fell 1.46% to close at 40,168.07, and the Topix index dropped 1.73% to end at 2,750.81.

The downward trend was led by significant losses in shares of Credit Saison, Nissui, and Obayashi Corporation on Tokyo’s main board, with declines of 4.96%, 4.89%, and 4.85%, respectively.

In contrast, Australian markets soared to new heights, with the S&P/ASX 200 index climbing 0.99% to reach a record 7,896.90.

Sydney’s gains were buoyed by a notable surge in mining shares, including Arcadium Lithium and Alumina, which jumped by a respective 8.31% and 5.97%.

Similarly, New Zealand's S&P/NZX 50 index also enjoyed gains, rising 0.79% to 12,105.29, with Heartland Group and Skellerup Holdings among the top performers.

China's markets experienced growth, with the Shanghai Composite advancing 0.59% to 3,010.66 and the Shenzhen Component increasing 1.31% to 9,342.92.

Noteworthy gains in Shanghai were recorded by Beijing Piesat Information Technology and China Master Logistics, which rocketed 20% and 10.01%, respectively.

Hong Kong's Hang Seng Index followed suit, gaining 0.91% to close at 16,541.42, led by strong performances from Zhongsheng Group, Haier Smart Home, and Meituan.

However, South Korea's Kospi index slightly declined by 0.34% to 2,745.82, impacted by significant losses in Hanwha Aerospace and the Industrial Bank Of Korea, which fell by 6.95% and 5.68%, respectively.

On the currency front, the dollar was last 0.02% stronger on the yen to trade at JPY 151.36.

The greenback also advanced against its antipodean counterparts, last rising 0.6% on the Aussie to AUD 1.5395, as it gained 0.59% against the Kiwi to change hands at NZD 1.6754.

In commodities, Brent crude futures were last up 1.31% on ICE at $87.22 per barrel, as the NYMEX quote for West Texas Intermediate rose 1.34% to $82.44.

Retail sales rise in Australia, yen intervention chatter intensifies

In economic news, Australian retail sales experienced a slight increase in February, although the growth was below market expectations.

Data from the Australian Bureau of Statistics showed a 0.3% rise in retail sales month-on-month, compared to a predicted 0.4% increase in a Reuters poll.

That followed more robust growth of 1.1% in January.

Year-on-year, February's retail sales amounted to AUD 35.87bn, making for a 1.6% increase from the prior year.

Meanwhile, speculation about Japan's potential intervention in the currency market intensified, with comments from Steven Englander, the head of Global G10 FX research and North America macro strategy at Standard Chartered, suggesting that such action was imminent.

Speaking to CNBC, Englander indicated that Japanese authorities were on the brink of stepping in to prevent further weakening of the yen.

“I think we’re actually very, very close to them jumping in,” he said.

“They’ve already discussed the political consequences and nobody’s sitting there asking for a weaker yen.”

Reporting by Josh White for Sharecast.com.