Nikkei 225 declined 2.72 per cent, the Topix plummeted 3.45 per cent, S&P/ASX 200 added 0.52 per cent, Kospi jumped 0.26 per cent, the small-cap Kosdaq was 0.86 per cent higher, Hang Seng index was 0.2 per cent higher, while the CSI 300 was slightly down
Asia-Pacific markets were mixed Thursday, after comments from U.S. Fed Chair Jerome Powell indicated a rate cut in September if inflation data remained “encouraging.”
However, Japan’s Nikkei 225 declined 2.72 per cent, while the broad-based Topix plummeted 3.45 per cent. The indexes were mainly dragged by losses in real estate stocks, while heavyweight exporters also saw losses as the yen firmed.
A stronger yen hits the competitiveness of Japanese exports, while higher borrowing costs tend to hit real estate companies.
On Wednesday, the BoJ raised its benchmark interest rate to almost 0.25 per cent, marking its highest level since 2008. The yen declined below the 150 level against the dollar late Wednesday, strengthening 0.9 per cent and trading at 148.61.
The country’s finance ministry revealed that it spent 5.53 trillion yen ($36.8 billion) on foreign exchange intervention from June 27 to July 29.
Investors in Asia are also assessing business activity data from around the region apart from the Fed comments and July purchasing managers index data (PMI) out from China, Japan and South Korea.
Australia’s S&P/ASX 200 hit new all-time highs, adding 0.52 per cent.
South Korea’s Kospi jumped 0.26 per cent, while the small-cap Kosdaq was 0.86 per cent higher. Reuters reported the country’s exports increased at the fastest pace in six months in July, as per preliminary data.
South Korean exports gained 13.9 per cent year-on-year to $57.49 billion, after a 5.1 per cent increase the previous month. However, the figure was weaker than an 18.4 per cent rise expected in a Reuters survey of economists.
Hong Kong’s Hang Seng index was 0.2 per cent higher, while the CSI 300 on mainland China was down slightly.
