Asia: Shares end higher; Nikkei at 15-year high

Asian shares rose on Friday taking their cue from Wall Street, where the S&P 500 closed at a record high overnight as disappointing US data pushed back expectations for a Federal Reserve rate hike.

Japan’s Nikkei 225 reversed early losses to end up 0.3% at 20,264.41 – it highest close since April 2000 – having slipped earlier in the day after the Bank of Japan left its monetary policy stance unchanged and maintained its annual purchases at JPY80 trillion. The bank also upgraded its assessment of economic conditions in Japan on the back of indicators pointing to stronger consumption.

“Whilst this more optimistic view from the BOJ suggests that further easing is off the table in the near future, we remain unconvinced that Abenomics will succeed,” said Rabobank.

“Therefore we continue to see additional easing in the second half of the year as the most likely scenario for Japan.”

In terms of individual stocks, Seibu Holdings fell sharply after US private equity firm Cerberus Capital Management initiated a sale of 33.75m shares of the company.

In China, the benchmark Shanghai Composite index closed up 2.8%, with financials pacing the advance, while Hong Kong’s Hang Seng closed up 1.7% at 27,992.83.

Australia’s S&P/ASX 200 erased earlier gains to end flat as financial stocks came under pressure, with Commonwealth Bank of Australia and Macquarie Group posting losses.

Retailer Oroton was the standout loser, slumping more than 20% after posting a profit warning. The company said it no longer expects earnings growth in the second half of the year and forecasts a 66% drop in full-year earnings.

South Korea’s Kospi ended up 1.1%, with SK Telecom in the black after the mobile carrier said it was seeing a record number of new user sign-ups for its new rate plan.