Asian stock markets mixed, Australia hits record high

Nikkei 225 declined 1.3% to 42,642.31, TOPIX index also dropped 1% from a record high of more than 3,100 points

Asian stock markets were mixed on Thursday, with Australia reaching a new record high boosted by Westpac earnings, while Japan stocks dropped from peak levels as a stronger yen weighed.

Investors also assessed Australia’s jobs data for July to gauge further rate cut expectations by the Reserve Bank of Australia (RBA).

Most Asian markets also took cues from upbeat sentiment on Wall Street around expectations of a Fed rate cut next month.

Major U.S. stock indices ended in positive territory on Wednesday, with the Nasdaq and S&P 500 reaching new record highs.

U.S. stock index futures were largely unchanged in Asia hours on Thursday.

Australia’s S&P/ASX 200 index climbed 0.8% to 8,996.80 points as of 02:25 GMT, hitting a new record high, spurred by this week’s rate cut by the RBA.

Corporate earnings also boosted the benchmark index higher.

Banking giant Westpac Banking Corp on Thursday reported a higher third-quarter profit, sending its shares soaring more than 6%, lifting the broader financial stocks higher.

Power producer Origin Energy shares rose more than 7% to hit a decade high, after reporting better-than-expected annual profit.

Meanwhile, insurer Suncorp shares jumped 4% on strong full-year earnings.

In economic prints, data on Thursday showed that Australia’s job market bounced back in July, largely in line with expectations, while the unemployment rate dropped from last month.

A rebound in the labour market could keep the RBA cautious on cutting rates further. It lowered rates by 25 bps to 3.60% on Tuesday this week.

Nikkei 225 declined 1.3% to 42,642.31 on Thursday, pulling back after Wednesday’s record high of 43,451 and six straight sessions of intraday gains.

Japan’s broader TOPIX index also dropped 1% from a record high of more than 3,100 points.