After testing a possible 19-month high on Thursday, Asian stocks slipped on Friday despite the global reflation trade pullback as investors shied away further from Asian equities.
The recovery on Thursday was driven by a rally from Wall Street and Chinese stocks rallying further while Asia-Pacific shares inched higher by 0.2% the highest since mid-2015. Stocks from Hong Kong also recorded a five-month high as investors went for the market’s less pricey valuations. The MSCI Asia-ex Japan index also recorded an overbought stock.
Main Movers In The Asian Market
In Japan, the Nikkei Stock Average fell down by 0.6% at 19,234.62 recording a six-day low compared to the previous session’s 19,173.53 as the dollar traded lower against the yen weighing most Japanese stocks.
The S&P/ASX 200 in Australia closed down 0.2% lower as the decline in the S&P 500 index caused by Trump’s comments regarding the tax policy to be unveiled soon by his administration weakened most equities in Asia and Australia. Although the Australian index showed some losses, the AUD rose up against a number of majors including the greenback, euro, Swiss franc and yen in the midst of a mixed jobs report data.
Among the biggest losers in Japan included real estate stocks like property developer Mitsui Fudosan closing 3% lower while automobile stocks like Suzuki Motors fell 1.82%.
Hong Kong’s Hang Seng Index meanwhile ended 0.3% lower coming from a recent five-month high on growing investor demand to tackle growing asset prices from Beijing.
The Kospi index in Korea fell with tech company Samsung Electronics falling 0.42% lower during the day after Samsung vice-chairman Lee Jae-Yong received an arrest warrant from the court in connection with a corruption scandal in connection with the impeachment of the country’s president. Samsung which bears the most weight on the Kospi led to a decline of almost 1.5% before closing 0.06% lower.
Although Asian stocks mostly loss during Friday’s session, global stocks recorded new highs as the United States recorded a strong economic data and positive comments from Federal Reserve chair Janet Yellen that more interest rate hikes are on their way as early as next month.
On Tuesday and Wednesday, Yellen hinted that the country has performed well when it comes to handling financial crisis compared to the
The FTSE in the United Kingdom also rose above 7,300 recording its highest close this month largely supported by the pharmaceutical sector.