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Asia shares mostly higher ahead of BoJ, shrug off US "tech wreck"

Published 06/15/2017, 09:58 PM
Updated 06/15/2017, 09:59 PM
© Reuters.  Asian shares mostly higher
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Investing.com - Asian shares were mostly higher on Friday, shaking off the U.S. "tech wreck" and awaiting the latest policy views from the Bank of Japan.

Japan's benchmark Nikkei 225 index rose 0.54% and South Korea's Kospi was nearly flat.

In Japan, air bag manufacturer Takata reportedly could file for bankruptcy next week, sources told Reuters. The Japan Exchange Group later announced that shares of the company would be suspended from trade today. The company agreed to pay out $1 billion in penalties after pleading guilty to fraud earlier this year following a scandal involving defective air bags.

Shares of tech stocks traded in Seoul turned defensive following the softer lead from Wall Street. Samsung Electronics (KS:005930) up 0.13%, but LG Display reversed earlier gains to sink 1.18%.

Australia's S&P/ASX 200 edged higher by 0.45%. Hong Kong's Hang Seng Index added 0.36% and the Shanghai Composite eased 0.22%.

Overnight, U.S. stocks closed lower on Thursday, as investors ditched large-cap tech stocks amid a fresh warning from a Wall Street analyst, comparing the recent rally in tech shares to the rally in the late 1990s, which lead to a tech bubble.

Shares of Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) ended the day in negative territory weighing on the broader market, after Jefferies strategist Sean Darby in note to clients, compared the technology stock run we're seeing now to the "melt-up" that occurred in the late 1990s.
Darby noted that both periods had declining inflation and low rates, alongside a thriving digital economy, warning that it didn't end well.

The bearish note from Jefferies overshadowed the release of upbeat economic reports suggesting that the U.S. economy continues to strengthen.

The U.S. Department of Labor reported Thursday that initial jobless claims decreased by 5,000 to 237,000 in the week ended June 4, beating forecasts of a 3,000 decline.

In a separate report, The Philly Fed said its index for current manufacturing activity in the region decreased to 27.6 in June from 38.8 in May. Analysts had expected a reading of 24.

The move lower in US stocks comes a day after the Federal Reserve hiked interest rates for the second time this year and increased expectations for an additional rate hike this year.

The Dow Jones Industrial Average closed at 21,359.90. The S&P 500 lost 0.22% while the Nasdaq Composite closed at 6,165.50, down 0.47%.

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