Asia report: Markets rise as Japan stands pat on monetary policy

Markets in Asia finished higher in Friday, with investors kept an eye on the Koreas as the North’s leader Kim Jong-un and the South’s president Moon Jae-in met for denuclearisation talks.

In Japan, the Nikkei 225 was up 0.66% at 22,467.87, as the yen weakened 0.05% against the dollar to last trade at JPY 109.36.

The broader Topix finished ahead 0.29% at 1,777.23.

On the monetary policy front, the Bank of Japan stood pat on its -0.1% short-term interest rate, telling markets that it would purchase Japanese government bonds to keep the 10-year yield around the 0% mark.

Notably, the central bank did omit previous mentions of a timeframe to which it wanted to achieve its target of 2% price stability by.

On the country’s economic activity, the Bank of Japan said risks in the country were “skewed to the downside for fiscal 2019 onward,” adding that it expected the economy to expand in the 2019 and 2020 financial years as a result of external demand.

It added that the speed of growth in Japan was expected to slow, reflecting a weakening in domestic demand.

It was the debut meeting for two new deputy governors at the central bank, with ex-academic and proponent of aggressive easing Masazumi Wakatabe being joined by career central banker Masayoshi Amamiya in the new seats.

On the mainland, the Shanghai Composite rose 0.23% to 3,082.18, and the smaller, technology-heavy Shenzhen Composite added 0.32% to 1,776.12.

South Korea’s Kospi was 0.68% higher at 2,492.40, while the Hang Seng Index in Hong Kong managed gains of 0.91% to end the day at 30,280.67.

Oil prices were lower, with Brent crude last down 0.32% at $74.50 and West Texas Intermediate falling 0.35% to $67.95 per barrel.

In Australia, the S&P/ASX 200 rose 0.72% to 5,953.60, with all subindices posting gains.

The hefty financials sector reversed earlier losses to finish up 0.22%, while the energy and materials subindices added 0.64% and 0.68% respectively.

Of the country’s major banks, Australia and New Zealand Banking Group, National Australia Bank and Westpac Banking Corporation were up 0.23%, 0.42% and 0.6% respectively.

Commonwealth Bank of Australia went against the trend of its peers, declining 0.98% in Sydney trading.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 1% at 8,370.37, led higher by medical technology firm Fisher & Paykel Healthcare, which was ahead 3.5%.

It was the second day of gains for the stock following the publication of research suggesting patients with chronic obstructive pulmonary disease saw significant improvements using the company’s humidifier product.

Both of the down under dollars were marginally weaker on the greenback, with the Aussie last off 0.01% at AUD 1.3239 and the Kiwi retreating 0.08% to NZD 1.4172.