Asia report: Markets sink as BoJ stands pat on interest rates
Markets in Asia mostly sank on Friday, led by Japan, after that country’s central bank stood pat on interest rate policy, and after a serious sell-off on Wall Street overnight.
AUD/USD
$0.6533
23:03 26/04/24
GBP/NZD
NZD2.1025
23:53 26/04/24
Hang Seng
17,651.15
10:20 26/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥158.3270
01:54 27/04/24
The Nikkei 225 was down 1.11% at 20,166.19, as the yen strengthened 0.07% against the dollar to last trade at JPY 111.20.
In Tokyo, the broader Topix index was 1.91% weaker at 1,488.19.
Financial plays suffered the heaviest losses after the Bank of Japan’s interest rate decision, with Mitsubishi UFJ Financial Group falling 2.22% and Sumitomo Mitsui Financial Group down 2.21%.
The Bank of Japan’s policy of negative interest rates has had a negative impact on the ability of Japanese banks to generate revenue in the country.
On the mainland, the Shanghai Composite was 0.79% lower at 2,516.25, and the smaller, technology-heavy Shenzhen Composite fell 0.96% to 1,284.66.
South Korea’s Kospi eked out gains of 0.07% to finish at 2,061.49, while the Hang Seng Index in Hong Kong was 0.51% higher at 25,753.42.
Geopolitical tensions were high on the agenda once again, after the US Department of Justice filed charges against two men from China on allegations of being involved in a worldwide hacking effort.
Zhang Shilong and Zhu Hua were accused of computer intrusions, wire fraud and identity theft, in campaigns that the DoJ said ran for a number of years, with US officials releasing strong rhetoric about the pair.
“China will find it difficult to pretend that it is not responsible for this action,” said deputy attorney-general Rod Rosenstein.
The whereabouts of both Zhang and Zhu remained unknown.
Oil prices were lower as the region went to bed, with Brent crude last down 2.68% to $52.93 per barrel, and West Texas Intermediate falling 1.46% to $45.22.
In Australia, the S&P/ASX 200 slipped 0.69% to 5,467.60, with the financial sector also under pressure in that country.
Australia and New Zealand Banking Group was down 1.06%, Commonwealth Bank of Australia lost 0.64%, National Australia Bank was off 1.08%, and Westpac Banking Corporation slid 1%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 1% lower at 8,686.19, with the broader market led lower by health products exporter Comvita, which plunged 9.1% as it departed the benchmark index.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.21% at AUD 1.4097, and the Kiwi retreating 0.52% to NZD 1.4837.