Asia report: Markets mixed with bonds, trade in focus
Markets in Asia finished mixed on Friday, with investors keeping a close eye out for developments on the US-China trade front, and on US Treasury bond yields.
AUD/USD
$0.6481
16:52 23/04/24
GBP/NZD
NZD2.0946
16:51 23/04/24
Hang Seng
16,828.93
10:21 23/04/24
Nikkei 225
37,552.16
09:44 23/04/24
USD/JPY
¥154.7670
16:52 23/04/24
In Japan, the Nikkei 225 eked out gains of 0.06% to 20,481.81, as the yen weakened 0.2% against the dollar to last trade at JPY 106.33.
Of the major components on the benchmark index, automation specialist Fanuc was down 0.77%, fashion firm Fast Retailing lost 0.1%, and technology conglomerate SoftBank Group was 1.11% lower.
The broader Topix index was ahead 0.1% by end-of-play in Tokyo, closing at 1,485.29.
On the mainland, the Shanghai Composite was 0.29% firmer at 2,823.82, and the smaller, technology-heavy Shenzhen Composite added 0.55% to 1,525.48.
In the closely-watched renminbi space, the People’s Bank of China set the onshore yuan’s loose peg at CNY 7.0312 against the dollar on Friday, which was weaker than expectations and the psychologically-important CNY 7 level once again.
The central bank allows the currency to trade at 2% either side of its daily reference point.
Markets have been keeping an eye on China’s currency movements since it depreciated beyond the CNY 7 mark against the greenback last week - a situation which saw the US Treasury officially label the country a ‘currency manipulator’.
South Korea’s Kospi was down 0.58% at 1,927.17, while the Hang Seng Index in Hong Kong added 0.94% to 25,734.22.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics last up 0.46%, while chipmaker SK Hynix was down 0.65%.
Investors globally were keeping a close eye on the bond market, after the 10-year US Treasury note touched a three-year low on Thursday, and the 30-year note hit a record low.
That drop came as rates on the 10-year and two-year noted inverted - a phenomenon broadly seen as a possible indication of an upcoming recession in the United States.
Markets watchers were also monitoring developments on the US-China trade front, after a spokesperson from the latter’s foreign ministry said that officials in Beijing were hoping their Washington counterparts would “meet China halfway”.
Earlier, the People’s Republic accused the White House of “seriously violating” an agreement reached by Xi Jinping and Donald Trump at the G20 summit in June, by placing an additional 10% tariff on Chinese goods.
Oil prices were higher as the region entered the weekend, with Brent crude last up 0.85% at $58.73 per barrel, and West Texas Intermediate adding 0.53% to $54.76.
In Australia, the S&P/ASX 200 slipped 0.04% to finish its trading session at 6,405.50, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.5% weaker at 10,655.36.
The down under dollars were a mixed affair against the greenback, with the Aussie last 0.19% stronger at AUD 1.4734, and the Kiwi weakening 0.17% to NZD 1.5540.