Asia report: Most markets drop, though down under defies
Markets in Asia ended the week on a largely downbeat note, as investors moved from central bank decisions to focus on US trading overnight.
AUD/USD
$0.6527
06:50 26/04/24
GBP/NZD
NZD2.0988
06:50 26/04/24
Hang Seng
17,626.75
10:21 25/04/24
Nikkei 225
37,979.81
09:43 25/04/24
USD/JPY
¥156.1815
06:50 26/04/24
The focus had been on central banks for much of the week, with the Federal Reserve, Bank of Japan and Reserve Bank of New Zealand all choosing to keep monetary policy steady.
In Japan - where many had expected further stimulus from the BoJ - markets were closed for the Shōwa Day national holiday, honouring the former emperor Hirohito’s birthday.
“The Japanese feel no immediate pressure to use monetary policy or currency intervention to turn around the economy,” said BK Asset Management managing director of foreign exchange strategy Kathy Lien on the BOJ decision.
On the mainland, the Shanghai Composite Index lost 0.24% at 2,938.45, while the Shenzhen Composite finished 0.02% lower at 1,873.99.
Renminbi remained relatively flat against the greenback all day, after the People’s Bank fixed the yuan’s loose peg at CNY 6.4589 per USD before markets opened, a sharp strengthening compared with Thursday’s peg of CNY 6.4954.
South Korea’s Kospi closed down 0.34% at 1,994.15, while the Hang Seng Index in Hong Kong lost 1.50% at 21,067.05.
Oil prices were ahead in Asian trading, and were still rising as the region went to bed. Brent crude was last up 0.46% at $48.36, while West Texas Intermediate added 0.97% at $46.48.
Down under, the S&P/ASX 200 retraced earlier losses and ended up 0.51% at 5,252,20. Its performance on Friday was underpinned by the financials, energy and materials subindexes.
Shares in detention centre operator Broadspectrum rocketed 32.14% after reports surfaced that its board approved a takeover bid from Spain’s Ferrovial.
Energy equities in the country were ahead, with Woodside Petroleum 2.24% higher and Santos adding 2.13%.
In New Zealand, the S&P/NZX 50 advanced 0.5% to close at 6,820.59. It was led by fuel refiner and retailer Z Energy, after the Commerce Commission approved its bid to purchase Chevron’s retail network in the country, consisting of the Caltex and Challenge forecourt brands.
Chevron is the latest global oil player to pull out of New Zealand retail in recent years - Z Energy itself was formed when Royal Dutch Shell shut shop in the country in 2010.
ExxonMobil has been planning to sell its New Zealand Mobil-branded network since at least 2009 - the Australian operations have already been sold to 7-Eleven.
The Kiwi moved sharply closer to the USD, still reacting to the RBNZ’s decision to hold interest rates at a record low 2.25% on Thursday. It was last 0.36% stronger at NZD 1.4312 per USD, while the Aussie moved 0.15% on the greenback at AUD 1.3094.