Dipo Olowookere
By Investors Hub
Asian stocks turned in a mixed performance on Friday in response to a dovish European Central Bank statement and the Bank of Japan’s weaker view on the inflation outlook. Trade concerns persisted ahead of likely announcement of U.S. tariffs on Chinese goods.
The euro extended declines against the dollar after the ECB indicated plans to wind down its bond-buying program and pledged to keep interest rates on hold for at least a year.
Chinese shares hit a 20-month low on worries that rising trade tensions could add pressure to the country’s economic growth.
The benchmark Shanghai Composite Index fell 21.23 points or 0.7 percent to 3,022.93, its lowest level since September of 2016 as the U.S. prepared to impose ?pretty significant? tariffs on Chinese goods.
Hong Kong’s Hang Seng Index dropped 130.6 points or 0.4 percent to 30,309.49 despite Fitch Ratings affirming the country?s sovereign ratings of with a ‘stable’ outlook.
In another development, the nation’s central bank adjusted its interest rate upward after the U.S. Federal Reserve hiked its key rate by a quarter point.
Meanwhile, Japanese shares rose and the yen weakened after the Bank of Japan kept its monetary policy steady, as widely expected, and downgraded its view on inflation. The Nikkei 225 Index climbed 113.14 points or 0.5 percent to 22,851.75, while the broader Topix Index closed 0.3 percent higher at 1,789.04.
Fast Retailing, Mitsui Mining & Smelting, Fujitsu, Daiichi Sankyo, TDK and Taiyo Yuden were among the prominent gainers.
Australian shares rose sharply to reach a one-month high as a surge in iron ore prices helped lift mining stocks and banks also recovered from recent losses.
The benchmark S&P/ASX200 Index rallied 77.40 points or 1.3 percent to 6,094, while the broader All Ordinaries Index jumped 1.2 percent at 6,205.30.
BHP Billiton rose half a percent after the mining giant unveiled plans to develop its majority-owned South Flank iron ore mine in Western Australia. Rio Tinto, South32 and Fortescue Metals Group climbed 1-2 percent.
Gold miner Evolution Mining advanced 1.4 percent and Newcrest Mining jumped 2.5 percent after gold prices rose to a one-month high.
Energy stocks Oil Search, Origin Energy, Woodside Petroleum and Santos also climbed 1-3 percent after an increase in crude oil prices. Banks ANZ, Commonwealth and Westpac rallied around 2 percent each.
Biotechnology and medical device company Sirtex Medical soared 4.6 percent after it accepted a A$1.87 billion takeover offer from China’s CDH Genetech.
