Asian Markets Close Mixed as Fed Hold Rates

By Investors Hub

Asian stocks ended mixed on Thursday after the U.S. Federal Reserve left its key rate unchanged, as widely expected, but set the stage for a rate hike at its next meeting in March. China Caixin manufacturing data matched expectations, helping limit losses across the region.

The manufacturing sector in China continued to expand in January at a steady pace, the latest survey from Caixin showed with a PMI score of 51.5. That was in line with expectations and unchanged from the December reading.

China’s Shanghai Composite Index slumped 34.59 points or 1 percent to end at 3,446.24, while Hong Kong’s Hang Seng Index slid 245.18 points or 0.8 percent to 32,642.09.

Meanwhile, Japanese shares snapped a six-day losing streak as the yen weakened against the dollar and a survey showed Japan’s manufacturing sector expanded at a faster rate in January. The Nikkei 225 Index jumped 387.82 points or 1.7 percent to finish at 23,486.11, while the broader Topix Index soared 1.8 percent to 1,870.44.

Exporters Honda Motor, Toyota Motor and Sony climbed 1-3 percent. Oil company Inpex Corp advanced 2.7 percent and Japan Petroleum rallied 3.8 percent. Fujifilm shares surged over 12 percent, a day after the company announced it is cutting 10,000 jobs globally at its joint venture with Xerox Corp.

Australian shares rose sharply, led by mining and energy stocks after data showed the country’s manufacturing sector posted the 16th month of growth last month.

Export prices beat forecasts to rise 2.8 percent sequentially in the fourth quarter of 2017, while building approvals tumbled 20 percent in December, separate reports showed.

The benchmark S&P/ASX 200 Index climbed 52.40 points or 0.9 percent to 6,090.10 and the broader All Ordinaries Index ended up 52.30 points or 0.9 percent at 6,198.80.

Banks ANZ, Commonwealth and Westpac all rose over 1 percent after the Australian Prudential Regulation Authority (APRA) released a progress report on an inquiry into the Commonwealth Bank of Australia.

Mining heavyweights BHP Billiton and Rio Tinto also gained over 1 percent after copper rose 1 percent on Wednesday on dollar weakness. Energy majors Origin Energy, Santos, Oil Search and Woodside Petroleum gained between half a percent and 1.3 percent after crude oil prices advanced overnight.

Household appliances distributor GUD Holdings jumped 5.8 percent on optimism over its growth outlook.

On the other hand, Godfreys Group slumped nearly 17 percent after the vacuum cleaner retailer reported weak sales for the Christmas period.