Asia report: Stocks mixed as yen strengthens further

3rd May 2024 08:40

(Sharecast News) - Hong Kong emerged as a frontrunner in the Asia-Pacific markets on Friday, buoyed by overnight gains on Wall Street.

Amid a relatively quiet trading session and without any major local economic releases, investors were looking ahead to pivotal US employment data.

"Asian stocks reached their highest level in 15 months, driven by the tech sector and Hong Kong stocks," said TickMill market analyst Patrick Munnelly.

"Meanwhile, the yen strengthened, moving further away from its recent 34-year lows, following a week of suspected intervention by Japanese authorities.

"With Japan and mainland China markets closed, trading activity in the region is expected to be quiet as traders anticipate the release of US nonfarm payrolls data later in the day."

Munnelly noted that the oil price increased modestly overnight, but had sharply decreased for the week, with the Brent crude price currently trading close to its lowest level since early March at around $84.

"During after-market hours, Apple announced its quarterly results and forecast, surpassing modest expectations and also introducing a record share buyback program.

"As a result, its stock surged by almost 7% in extended trading."

Japan's markets remained closed in observance of Constitution Memorial Day, while China continued its extended Labour Day holiday closure.

Markets mixed on quiet day for region

In Hong Kong, the Hang Seng Index climbed 1.48%, closing at 18,475.92.

Notable performers in the special administrative region included JD.com, Sands China, and NetEase, which rose 5.48%, 4.92%, and 4.53% respectively.

However, South Korea's Kospi experienced a slight downturn, slipping by 0.26% to reach 2,676.63.

The decline in Seoul was marked by significant drops in stocks such as Kia Corporation, down 4.77%; EcoPro Materials, off 4.36%; and Hankook Tire, which was off 3.66%.

Meanwhile, Australia's S&P/ASX 200 index saw a modest uptick of 0.55%, reaching 7,629.00.

Notable gainers in Sydney included Block, GQG Partners and Audinate Group, which were up a respective 9.83%, 5.53% and 5.48%.

New Zealand's S&P/NZX 50 also experienced positive momentum, rising by 0.54% to close at 11,938.08.

Pacific Edge was up 7.29%, while Serko advanced 3.94% and Vista Group International closed 2.78% higher in Wellington.

Yen strengthens further as intervention speculation continues

In currency markets, the dollar was last down 0.25% on the yen, trading at JPY 153.26.

Market speculation that the Japanese government had intervened to prevent the currency weakening further had been ongoing through the week, although authorities in Tokyo were yet to confirm or deny this.

"The week has been dominated by speculation around the Japanese yen, where the likelihood of intervention by the Japanese authorities to shore up the currency seems to have been proven," said Interactive Investor head of markets Richard Hunter.

The greenback meanwhile declined 0.21% against the Aussie to AUD 1.5200, while it retreated 0.26% from the Kiwi, changing hands at NZD 1.6730.

On the oil front, Brent crude futures were last up 0.35% on ICE at $83.96 per barrel, while the NYMEX quote for West Texas Intermediate added 0.38% to $79.25.

Reporting by Josh White for Sharecast.com.