Asian Shares Subdued Before Key Central Bank Meetings

Asian stocks ended on a muted note Friday as fresh U.S. labor market data spurred concerns that the Federal Reserve will keep interest rates higher for longer to rein inflation.

Investors also looked ahead to central bank meetings in the U.S., Europe and Japan next week for further clues on the rate outlook.

The dollar index was little changed and Treasury yields slipped slightly as investors expressed hopes for a Fed rate pause after a 25 basis point rate hike expected next week.

Gold headed for a third consecutive weekly gain, while oil prices were on course for a fourth consecutive weekly gain amid signs of falling crude inventories and lower Russian oil exports.

China’s onshore yuan traded higher after the country’s central bank set a much stronger guidance rate than expected.

China’s Shanghai Composite Index fluctuated before finishing marginally lower despite the government pledging to make the private economy “bigger, better and stronger” with a series of policy measures.

Concerns grew over the health of Chinese property developers after rating agencies sent stark warnings about Wanda Commercial, China’s biggest commercial real estate firm.

Hong Kong’s Hang Seng Index climbed 0.8 percent to 19,075.26 after a choppy session.

Japanese stocks fell for a second straight session, with chip-related shares leading losses. Advantest, Tokyo Electron and Screen Holdings lost 5-6 percent after Taiwan Semiconductor Manufacturing Co. cut its sales outlook for this year.

The Nikkei 225 Index dropped 0.6 percent to 32,304.25 while the broader Topix Index settled marginally higher at 2,262.20. The yen held steady after data showed Japan’s inflation may have peaked.

Motor maker Nidec soared 10.4 percent after its first-quarter net profit rose 55 percent from a year earlier. Drug maker Daiichi Sankyo gained 1.7 percent after its blood cancer treatment got approval from the U.S. health regulator.

Peers Takeda Pharmaceutical and Chugai Pharmaceutical rallied 1.8 percent and 1.4 percent, respectively.

Seoul stocks eked out modest gains, with the Kospi rising 0.4 percent to 2,609.76.

Australian markets ended a tad lower as tech stocks succumbed to selling pressure on fears of further tightening by the Federal Reserve.

Afterpay owner Block gave up 2.1 percent, WiseTech Global fell 2.4 percent and Xero lost 3.9 percent.

Gold miners also fell heavily, with Newcrest plummeting 5.3 percent after potential buyer Newmont posted weak second-quarter earnings.

The benchmark S&P/ASX 200 Index slipped 0.2 percent to 7,313.90, while the broader All Ordinaries Index closed 0.2 percent lower at 7,526.80.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index ended marginally higher at 11,940.44, reversing an early slide.

U.S. stocks ended mixed overnight as investors reacted to disappointing earnings news from the likes of Netflix and Tesla and signs the labor market remains tight.

Data showed weekly jobless claims fell to a two-month low, boosting rate-hike bets.
The Dow inched up half a percent to close higher for the ninth straight session, reaching its best closing level in over a year.

On the contrary, the S&P 500 shed 0.7 percent and the tech-heavy Nasdaq Composite plunged 2.1 percent.

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