Asia report: Most markets higher as Bank of Japan stands pat

In Japan, the Nikkei 225 was up 0.62% at 20,144.59, as the yen weakened against the dollar, last losing 0.34% at JPY 112.35.

Tokyo traders were satiated by the Bank of Japan’s decision to stand still on monetary policy, and were also buoyed by the release of better-than-expected trade data earlier in the session.

Exports from Japan rose 9.7% year-on-year in June, and imports were ahead 15.5%.

Those readings compared to forecasts for 9.5% and 14.6% improvements, respectively.

On the mainland, the Shanghai Composite was up 0.44% at 3,245.33, and the smaller, technology-heavy Shenzhen Composite was ahead 0.49% at 1,847.97.

South Korea’s Kospi finished 0.49% higher at 2,441.84, while the Hang Seng Index in Hong Kong was 0.26% firmer at 26,740.21.

Hong Kong shares in Chinese property developer Sunac rocketed ahead 14.19% after news the Dalian Wanda conglomerate had wrangled R&F Properties in its $9bn property sale, after earlier reports Dalian and Sunac were the only partied involved in the mammoth transaction.

Central banks lead the agenda for most market watchers, with the European Central Bank expected to stand pat on interest rates later in the day.

Traders were primarily looking for clues as to whether the bank was preparing to announce changes to its bond-buying programme in September.

Some analysts said the ECB might only slightly adjust its rhetoric to emphasise that any changes to its bias towards easing would be dependent on broader economic improvement.

“The press conference may be where the action may be, with Draghi likely to rein in the hawks - and policy convergence trades - even as the doves concede ground,” noted Mizuho Bank foreign exchange strategist Chang Wei Liang.

Back in Asia, the Bank of Japan appeased market expectations and kept its monetary policy on hold after its two-day meeting, although it did slash its inflation forecasts for the 2017-18 and 2018-19 fiscal years.

Oil prices were ahead after a report from the US Energy Information Administration suggested a larger-than-expected fall in US crude stockpiles.

Prices were mixed in early European trading, however, with Brent crude futures last up 0.02% at $49.71 and West Texas Intermediate down 0.02% at $47.31.

Australia’s S&P/ASX 200 added 0.51% to close at 5,761.45, with the weighty financials subindex once again underpinning the subindex, as it rose 1.25%.

Fresh jobs data showed employment in the sunburnt country rose 14,000 in June - short of the 15,000 figure anticipated by markets.

Participation in the labour market was ahead of expectations, however, at 65% in June compared to the 64.9% forecast.

Infant formula manufacturer Bellamy’s Australia fell 5.04% after China suspended the import licence for its products, although the stock initially tumbled 12% on the news.

Shares in Bellamy’s had been suspended from trade for a fortnight and only resumed trade on Thursday morning, before the licence suspension.

New Zealand markets were the exception to the sea of green in Asia, with the S&P/NZX 50 falling 0.8% to 7,672.44.

It was dragged below the waterline by one of the country’s largest companies, construction conglomerate Fletcher Building, after the board confirmed a second earnings downgrade for the year, alongside the departure of chief executive Mark Adamson with immediate effect.

Shares in Fletcher were off 6.2%.

After several days of relative strength, the down under dollars both turned weaker against the greenback, with the Aussie last off 0.56% at AUD 1.2646 and the Kiwi retreating 0.21% to NZD 1.3621.