Dipo Olowookere
By Investors Hub
Asian stocks closed mixed in thin holiday-trade on Friday even as Chinese markets came under selling pressure after data showed China’s private sector expanded at the weakest pace in sixteen months in October.
Underlying sentiment remained supported somewhat after the release of U.S. tax reform bill as well as the announcement of Jerome Powell as the next Federal Reserve Chair.
Investor attention shifted to the all-important U.S. jobs report due tonight, with U.S. employment expected to jump by 312,000 jobs in October after unexpectedly dipping by 33,000 jobs in September. The unemployment rate is expected to hold at 4.2 percent.
China’s Shanghai Composite index dropped 11.57 points or 0.34 percent to 3,371.74 on concerns over economic slowdown. The Japanese markets were closed for the Culture Day holiday.
Australian shares closed modestly higher, led by financials and miners after U.S. House of Representatives Republicans released a sweeping tax overall that would deliver deep tax cuts. Investors shrugged off disappointing retail sales and service sector data.
While Australia’s retail sales remained flat in September, defying economists’ forecast for an increase, growth in the services sector eased slightly in October from the previous month, separate reports showed.
The benchmark S&P/ASX 200 index rose 28.20 points or 0.48 percent to 5,959.90 while the broader All Ordinaries index ended 28.10 points or 0.47 percent higher at 6,030.30.
Banks ANZ, Commonwealth and Westpac rose between 0.2 percent and 0.8 percent. Mining heavyweights BHP Billiton and Rio Tinto closed up over 1 percent each as Chinese coal and iron ore future extended gains.
Gold miners Evolution and Newcrest gained more than 2 percent. Woodside Petroleum advanced 1.1 percent and Beach Energy surged as much as 4.7 percent as Brent crude prices hovered near two-year highs.
Seoul shares hit fresh record highs after U.S. President Trump announced the Powell nomination as Fed Chair. The benchmark Kospi climbed 11.61 points or 0.46 percent to 2,557.97.
In economic releases, South Korea’s current account surplus widened in September from a year earlier due to an increased surplus in the goods account, central bank data showed.
