Pedestrians cross a road in front of the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, on Thursday, Oct. 29, 2020.
Kiyoshi Ota | Bloomberg via Getty Images
Japan stocks led most Asian markets higher Thursday, while Hong Kong’s Hang Seng index slipped as the China stimulus rally appeared to ease.
Japan’s Nikkei 225 opened 2.57% higher while the broad-based Topix added 2%.
The uptick came as the yen slid to as weak as 147.15 against the U.S. dollar, a day after clocking its largest single-day decline since June 2022.
On Wednesday, Japan’s new prime minister, Shigeru Ishiba, told reporters economic conditions don’t currently support another rate hike. Ishiba made his comments after meeting with Bank of Japan Governor Kazuo Ueda.
Hong Kong’s Hang Seng index fell 2.2%, coming off a strong session on Wednesday when the index closed over 6% higher after hitting a 22-month high. Chinese stocks have been on a tear ever since authorities announced a slew of support measures last week.
Investors will look ahead to a busy slate of data in Asia. Australia’s seasonally adjusted Judo Bank Composite PMI data came in at 49.6 in September, lower from the 51.7 in August, falling past the 50 neutral mark. The services PMI posted 50.5, down from 52.5 in August.
The Australian Bureau of Statistics is also expected to report the country’s trade data for August. Economists surveyed in a Reuters poll forecast a surplus of 5.5 billion Australian dollars, down from AU$6.01 billion in July.
Japan’s au Jibun bank composite final PMI, which takes into account both manufacturing and service activities, for September stood at 52.0, signaling a softer expansion in the private sector compared to 52.9 in August, according to the private survey conducted by S&P Global Intelligence. The service sector PMI, compiled from around 400 survey responses, was 53.1 in September, lower than the 53.7 in August.
Other data on tap include August retail sales from Hong Kong.
Markets in mainland China will remain closed until Oct. 8 for a week-long holiday, while South Korea will be shut Thursday for National Foundation Day.
Australia’s S&P/ASX 200 jumped 0.25%.
Elsewhere, Middle East conflicts were in focus this week as markets brace for more uncertainty in the region. Israel started a ground operation into Lebanon and conducted more airstrikes, while Iran launched a ballistic missile attack in retaliation for its recent killing of Hezbollah leader Hassan Nasrallah.
Overnight in the U.S., the three major U.S. indexes closed slightly above the flatline as Middle East tensions weighed. The S&P 500 added just 0.01% to close at 5,709.54, and the Dow Jones Industrial Average added roughly 39 points to close at 42,196.52. The Nasdaq Composite gained 0.08% to 17,925.12.
