Asia report: Markets mixed as Bank of Korea stands pat on rates
Markets in Asia were mixed on Thursday, with Australian equities rocketing more than 3% as South Korea’s central bank stood pat on interest rates as anticipated.
In Japan, the Nikkei 225 slipped 0.04% to 19,345.77, as the yen weakened 0.07% against the dollar to last trade at JPY 108.91.
Of the major components on the benchmark index, automation specialist Fanuc was up 2.85%, fashion firm Fast Retailing rose 1.14%, and technology conglomerate SoftBank Group was 1.06% firmer.
The broader Topix index was 0.6% weaker by the end of trading, closing at 1,416.98.
On the mainland, the Shanghai Composite was 0.37% firmer at 2,825.90, and the smaller, technology-heavy Shenzhen Composite was ahead 0.85% at 1,755.37.
South Korea’s Kospi was ahead 1.61% at 1,836.21, while the Hang Seng Index in Hong Kong added 1.38% to 24,300.33.
Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 1.03% and chipmaker SK Hynix 0.59% firmer.
Car manufacturer Hyundai Motor was a bright spot as well, soaring 7.88%.
The Bank of Korea kept its benchmark interest rate on hold during the session at 0.75%, which was broadly expected by the market, according to analysts polled by Reuters.
Investors were collectively holding their breath during the Asian session, ahead of the weekly unemployment claims numbers due out of the United States later in the global day.
More than five million Americans are expected to have filed for unemployment last week, as the Covid-19 coronavirus pandemic continues to roil labour markets globally.
“The mood in markets continues to improve but it’s patchy,” said London Capital Group analyst Jasper Lawler.
“Virus cases continue to rise at a rapid clip but markets are extrapolating the data forward and hoping we’re close to a peak.
“Asian and European markets are playing catch-up to the rally on Wall Street with a more positive start on Thursday.”
Oil prices were higher as the region went to bed, with Brent crude last up 2.18% at $33.57 per barrel, and West Texas Intermediate rising 4.2% to $26.19.
In Australia, the S&P/ASX 200 rose 3.46% to 5,387.30, with the hefty financials subindex being lifted by rises for the country’s major banks.
Australia and New Zealand Banking Group was up 6.57%, Commonwealth Bank of Australia added 3.26%, National Australia Bank was 4.76% higher, and Westpac Banking Corporation rose 4.66%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.68% to settle at 9,963.90, led lower by medical devices manufacturer Fisher & Paykel Healthcare, which was down 5.7%.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.07% at AUD 1.6064, and the Kiwi retreating 0.26% to NZD 1.6685.