Asian Stocks Close Mixed, Australian Shares Rebound

By Investors Hub

Asian stocks closed mixed on Thursday as oil prices held steady in Asian trading after falling more than 2 percent overnight on worries over whether OPEC-led output cuts would be able to rein in a three-year glut.

China’s Shanghai Composite Index gave up early gains to end 9.09 points or 0.3 percent lower at 3,147.13, as the initial euphoria over MSCI’s decision to include China’s so-called A-shares in its emerging-markets index faded. Hong Kong’s Hang Seng Index edged down 20.05 points or 0.1 percent to 25,674.53.

Japanese shares extended losses from the previous session as the dollar pulled back from a three-week high versus the yen. The Nikkei 225 Index dropped 28.28 points or 0.1 percent to 20,110.51, while the broader Topix index closed 0.1 percent lower at 1,610.38.

Takata Corp. shares plunged 55 percent after reports that the struggling airbag maker will seek bankruptcy protection from creditors on Monday.

There is still a long way to go before achieving the inflation target of 2 percent, Bank of Japan Deputy Governor Kikuo Iwata said.

Iwata also told business leaders in Aomori risks continue to be skewed to the downside, particularly regarding developments in overseas economies and Japan’s inflation expectations,.

Meanwhile, Australian shares rebounded from heavy losses in the previous session as iron ore futures rose and banks bounced back after two days of losses.

The benchmark S&P/ASX 200 Index climbed 40.30 points or 0.7 percent to 5,706 after losing as much as 1.6 percent the previous day. The broader All Ordinaries Index ended up 39.10 points or 0.7 percent at 5,742.30.

Mining giant Rio Tinto rose 0.6 percent to snap a seven-day losing streak, while rival BHP Billiton inched up 0.2 percent and Fortescue Metals Group jumped 3.8 percent.

Gold miners Northern Star, Regis Resources and Evolution Mining rallied 2-3 percent after gold prices rose for a second straight session, supported by an easing dollar and flattening U.S. Treasury yields.

The big four banks rose over 1 percent each despite the South Australian government imposing its own bank levy, which will help it raise $370 million over the next four years.