Asia Mixed Despite Strong U.S. Earnings

Asia Pacific shares traded mixed on Thursday, despite strong quarterly earnings in the U.S. and after the U.K. government won a parliamentary confidence vote. Worries over China likely weighed on market sentiment.

The Nikkei 225 lost another 40.48 points, or 0.2%, to 20,402.27. The yen, considered a safe-haven asset, strengthened against the U.S. dollar, trading at 108.85, climbing from an earlier session low of 109.12.

In Hong Kong, the Hang Seng Index dropped 146.47 points, or 0.5%, to 26,755.63

Australian markets enjoyed marginal gains. Meanwhile the Australian dollar traded at $0.7157 U.S.


In Shanghai, the CSI 300 fell 17.23 points, or 0.6%, to 3,111.42

The on-shore yuan traded at 6.7644 to the U.S. dollar. Prior to the market open, China’s central bank set the yuan mid-point at 6.7592. The People’s Bank of China (PBOC) allows the exchange rate to rise or fall 2% from the official mid-point rate it sets daily.

On Wednesday, the PBOC pumped 560 billion yuan ($83 billion U.S.) into its banking system, which was a record amount of money injected in one day. In a statement on its website, the central bank said because it was the “peak of the tax period,” total liquidity of the banking system is “declining rather quickly.”

In other markets

In Singapore, the Straits Times Index sagged 14.67 points, or 0.5%, to 3,214.44

In Korea, the Kospi index squeezed up 0.96 points, or 0.1%, to 2,107.06

In Taiwan, the Taiex index picked up 25.34 points, or 0.3%, to 9,789.15

In New Zealand, the NZX 50 gained 50.37 points, or 0.6%, to 9,077.81

In Australia, the ASX 200 added 14.9 points, or 0.3%, to 5,850.05