Asia report: Markets finish weaker as BoJ stands pat on policy
Most markets in Asia were flat or in the red as they closed on Thursday, as investors digested the latest decision from the Bank of Japan, which held its policy steady.
In Japan, the Nikkei 225 was down 0.29% at 23,864.85, as the yen strengthened 0.07% against the dollar to last trade at JPY 109.47.
Technology conglomerate SoftBank Group surged 2.08%, while automation specialist Fanuc lost 0.57% and Uniqlo owner Fast Retailing slid 0.9%.
Among other stocks, convenience store giant FamilyMart sank 2.21%.
The broader Topix index was 0.13% lower by the end of trading in Tokyo, finishing its session at 1,736.11.
Much of the day’s attention was on the Bank of Japan, which stood pat on monetary policy, as widely expected by the markets.
“Japan’s economy is likely to continue on a moderate expanding trend, as the impact of the slowdown in overseas economies on domestic demand is expected to be limited, although the economy is likely to continue to be affected by the slowdown for the time being,” the central bank said in its statement.
On the mainland, the Shanghai Composite was flat at 3,017.07, and the technology-focussed Shenzhen Composite added 0.21% to 1,713.03.
South Korea’s Kospi managed gains of 0.08% to 2,196.56, while the Hang Seng Index in Hong Kong was 0.3% weaker at 27,800.49.
Seoul’s blue-chip technology stocks were mixed, with Samsung Electronics down 0.53%, while chipmaker SK Hynix was 0.65% firmer.
The gains for the latter came on the back of US chip producer Micron Technology’s first quarter report overnight.
Its shares rose 3.79% on Wall Street overnight, after it beat expectations on both the top and bottom line.
Markets were also faced with the news that US president Donald Trump was set to stand trial in the Senate, after the Democrat-dominated House of Representatives voted to impeach him on charges of abuse of power and obstruction of Congress.
It appeared to have little effect on global equities, however.
“It is a sign of the times when the impeachment of the president of the United States produces nothing but a shrug,” said Markets.com analyst Neil Wilson.
“By becoming only the third president in history to be impeached, Mr Trump joins a select club - markets simply don’t care.”
Wilson said the Republican-controlled Senate would never abandon their president.
“Democrat speaker Nancy Pelosi has suggested she may delay sending the letters of impeachment up to the Senate, but this is posturing.
“The impeachment process has and remains so partisan that Mr Trump will not be removed from office.”
Oil prices were higher as the region went to bed, with Brent crude last up 0.08% at $6.22 per barrel, and West Texas Intermediate added 0.08% to $60.90.
In Australia, the S&P/ASX 200 slid 0.27% to 6,833.10, as investors in the sunburnt country pored through the latest jobs data out of Canberra.
A total of 39,000 new jobs were added to the economy in November on a seasonally-adjusted basis, which was well ahead of expectations for a 14,000 increase according to economists polled by Reuters.
The country’s seasonally-adjusted unemployment rate also beat forecasts, coming in at 5.2% for the month, compared to the 5.3% expected.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 extended its gains, rising 1.3% to 11,480.61 by the end of trading in Wellington.
Retirement property developer Metlifecare was ahead 2% after its board defended the firm from a takeover bid that it considered opportunistically low.
The down under dollars were a mixed affair against the greenback, with the Aussie last 0.28% stronger at AUD 1.4549, as the Kiwi weakened 0.09% to NZD 1.5190.