Japan’s stock market jumped 3%, clawing back almost all of the losses from the previous two days ahead of Thursday’s central bank meeting outcome, while shares in the rest of Asia slipped with weaker commodity prices weighing on Australia.
In Japan, the Nikkei 225 index ballooned 358.77 points, or 3%, to close at 12,362.20, the biggest rise in nearly two months, as investors eagerly awaited the results of the Bank of Japan’s two-day policy meeting that started Wednesday.
It is the first meeting with new Governor Haruhiko Kuroda at the helm, and investors are watching for whether any fresh easing measures to kick-start the stagnant economy will meet market expectations.
In Hong Kong, the Hang Seng Index shaved off 30.33 points, or 0.1%, to 22,337.49. Banks dropped following the China Banking Regulatory Commission’s tighter rules on wealth management products, which are expected to restrain smaller banks’ earnings growth given their reliance on WMPs. China Minsheng Banking Corp. fell 2.1% and China CITIC Banking Corp. dropped 3.7%.
Analysts polled by Dow Jones Newswires expect the central bank will increase its asset purchases--its main weapon against deflation with interest rates near zero--by 15 trillion yen to 20 trillion yen, mostly through buying Japanese government bonds.
Fast Retailing Co. Ltd. rose 13.9% in Tokyo after the firm’s Uniqlo unit reported domestic same-store sales climbed 23.1% on-year in March, the second straight month of increases.
Australia’s index dropped, as weaker commodity prices weighed on resources stocks. Among metal stocks, Newcrest Mining Ltd. lost 3.0%, Fortescue Metals Group ltd. skidded 3.4%, and Rio Tinto Ltd. fell 2.0%. Among energy stocks, Santos Ltd. dropped 2.1% and Origin Energy Ltd. fell 1.9%.
South Korea’s Kospi Composite fell 0.2% to 1,983.22, weighed by STX Offshore & Shipbuilding Co. Ltd., which dropped by its daily limit of 15% after asking creditors on Tuesday for financial support, just days after its parent company failed to sell assets to help repay maturing debt.
The market will be closed Thursday for the tomb-sweeping holiday.
In currency markets, the U.S. dollar rose mildly against the euro and yen, however trading was cautious before a number of key events including the Bank of Japan and European Central Bank policy meeting outcomes Thursday as well as Friday’s nonfarm payrolls data in the U.S.
The dollar was at ¥93.53 late in the Asian day, compared with ¥93.43 late Tuesday in New York, while the euro was at $1.2812 compared with $1.2820.
CHINA
The Shanghai CSI 300 Composite 300 index fell 2.84 points, or 0.1%, to 2,483.55, in light trading before a holiday-extended four-day weekend and as investors remained cautious before the release of key Chinese economic data next week.
A rise in both HSBC’s China services purchasing managers’ index to a six-month high of 54.3 in March and China’s official non-manufacturing Purchasing Managers’ Index to 55.6 in March failed to boost sentiment in China.
In other markets;
In Korea, the Kospi Index doffed 2.93 points, or 0.2%, to 1,983.22
In Taiwan, the Taiex Index picked up 29.17 points, or 0.4%, to 7,942.35
The Singapore Straits Times Index gained 4.18 points, or 0.1%, to 3,321.77
In New Zealand, the NZX 50 added 1.44 points to 4,412.85
Australia’s ASX 200 shed 27.83 points, or 0.6%, to 4,957.68
