Asian Shares Mixed; Nikkei Falls After Yen's Recent Gains
September 23 2016 - 12:10AM
Dow Jones News
Asian shares were mixed early Friday, with some markets seeing
support amid easing worries that central banks globally would
increase interest rates soon.
Australia's S&P/ASX 200 was up 0.6%, while South Korea's
Kospi was trading 0.1% higher and Singapore's Straits Times Index
was down 0.2%.
In Japan, the Nikkei Stock Average was trading down 0.1%,
following the yen's strength on Thursday after the U.S. Federal
Reserve decided to keep rates unchanged. Japanese markets were
closed Thursday for a holiday.
The yen retreated slightly against the U.S. dollar on Friday on
caution over a possible response from Japanese authorities
regarding the currency's latest strength, following a meeting of
top finance officials on Thursday.
Shares of Japanese exporters were among the losers Friday, with
Honda Motor Co. falling 2.6% and Toyota Motor Corp. down by
2.7%.
Some financial stocks fell on profit-taking after they got a
boost Wednesday from the Bank of Japan's latest policy actions.
Dai-ichi Life Insurance Co. was down 4.7% Friday, while Mitsubishi
UFJ Financial Group retreated 2.3%.
"We are seeing some pullback [in stocks], but BOJ's
communication is getting better," says Hideyuki Ishiguro, a senior
strategist at Daiwa Securities. "Now that the target is on the
interest rate, there is greater latitude for easing."
Meanwhile, Hong Kong's Hang Seng Index was up 0.1%, building on
Thursday's gains, as property developers outperformed following the
Fed's rate decision. Hong Kong's interest-rate movements mirror
those of the U.S., given the local currency's peg to the
greenback.
The Hang Seng Property Subindex was last up 0.4%, with shares of
CKH Holdings adding 1.0% and Wharf Holdings gaining nearly 1%.
Still, investors remain cautious, assessing the broader impact
of the Fed action, said Linus Yip, chief strategist at First
Shanghai Securities in Hong Kong.
Though short-term rates remain unchanged, "there is a good
chance rates will rise in December," he said. Already, some markets
are seeing profit-taking moves post the central-bank announcements,
Mr. Yip said.
Brent crude, the international benchmark for oil, was down 1% in
early Asian trade, while gold was down 0.4%.
Kosaku Narioka contributed to the article.
Write to Kenan Machado at kenan.machado@wsj.com
(END) Dow Jones Newswires
September 22, 2016 23:55 ET (03:55 GMT)
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