Investing.com - Asian stock markets were mixed during late Asian trade on Thursday, as uncertainty surrounding talks between U.S. lawmakers to avoid the looming fiscal cliff crisis weighed on appetite for riskier assets.
Shares in Japan came under heavy selling pressure following the Bank of Japan’s announcement on monetary policy.
During late Asian trade, Hong Kong's Hang Seng Index added 0.2%, Australia’s ASX/200 Index settled 0.3% higher, while Japan’s Nikkei 225 Index ended down 1.2%.
Market players continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the two weeks left before the deadline.
President Barack Obama said Wednesday that he would veto House Speaker John Boehner's alternative tax plan, dampening hopes a deal can be reached before the year-end deadline.
In Tokyo, the Nikkei came off the previous session’s eight-month high, as investors locked in profits after the BoJ boosted the size of its asset-purchase program by JPY10 trillion, broadly in line with market expectations.
The central bank also maintained its target for consumer price inflation at 1%, amid speculation for a slight increase following the Liberal Democratic Party’s landslide victory in elections earlier in the week.
LDP leader Shinzo Abe has called for unlimited easing by the central bank in order to meet a 2% inflation target and spur growth in the recession-hit economy.
The yen strengthened against the U.S. dollar following the announcement, putting pressure on shares in exporters.
Consumer electronics makers Sony and Sharp fell 1.3% and 1.6% respectively, while automakers Mitsubishi and Nissan plunged 5.5% and 7.35% apiece.
The Nikkei has rallied nearly 15% since November 14, with exporters amongst the most notable gainers, as ongoing weakness in the yen boosted the outlook for export earnings.
Meanwhile, shares in Hong Kong swung between small gains and losses, following the previous session’s rally to a near 17-month high.
Index heavyweight HSBC climbed 1.5%. Shares of Europe’s largest lender command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
On the downside, Esprit Holdings saw shares slide an additional 1.5%, tacking on the previous session’s 5% loss, after it issued a profit warning due to worse-than-expected operating results for the July-September period.
Elsewhere, in Australia, the benchmark ASX/200 Index ended at a fresh 17-month high, supported by strong gains in the banking sector.
The nation’s big four banks all rose, with ANZ Banking Group gaining the most, up 0.65%.
Shares in surf-wear retailer Billabong tumbled 6%, taking its two-day losses to nearly 20% after the company slashed its annual earnings guidance on Wednesday.
Looking ahead, European stock market futures were mostly lower, as investors eyed ongoing U.S. budget talks.
The EURO STOXX 50 futures pointed to a loss of 0.25% at the open, France’s CAC 40 futures shed 0.2%, London’s FTSE 100 futures eased down 0.2%, while Germany's DAX futures pointed to a loss of 0.3% at the open.
Later Thursday, the U.S. was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and data on manufacturing activity in Philadelphia. In addition, the U.S. was to publish industry data on existing home sales.
Shares in Japan came under heavy selling pressure following the Bank of Japan’s announcement on monetary policy.
During late Asian trade, Hong Kong's Hang Seng Index added 0.2%, Australia’s ASX/200 Index settled 0.3% higher, while Japan’s Nikkei 225 Index ended down 1.2%.
Market players continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the two weeks left before the deadline.
President Barack Obama said Wednesday that he would veto House Speaker John Boehner's alternative tax plan, dampening hopes a deal can be reached before the year-end deadline.
In Tokyo, the Nikkei came off the previous session’s eight-month high, as investors locked in profits after the BoJ boosted the size of its asset-purchase program by JPY10 trillion, broadly in line with market expectations.
The central bank also maintained its target for consumer price inflation at 1%, amid speculation for a slight increase following the Liberal Democratic Party’s landslide victory in elections earlier in the week.
LDP leader Shinzo Abe has called for unlimited easing by the central bank in order to meet a 2% inflation target and spur growth in the recession-hit economy.
The yen strengthened against the U.S. dollar following the announcement, putting pressure on shares in exporters.
Consumer electronics makers Sony and Sharp fell 1.3% and 1.6% respectively, while automakers Mitsubishi and Nissan plunged 5.5% and 7.35% apiece.
The Nikkei has rallied nearly 15% since November 14, with exporters amongst the most notable gainers, as ongoing weakness in the yen boosted the outlook for export earnings.
Meanwhile, shares in Hong Kong swung between small gains and losses, following the previous session’s rally to a near 17-month high.
Index heavyweight HSBC climbed 1.5%. Shares of Europe’s largest lender command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
On the downside, Esprit Holdings saw shares slide an additional 1.5%, tacking on the previous session’s 5% loss, after it issued a profit warning due to worse-than-expected operating results for the July-September period.
Elsewhere, in Australia, the benchmark ASX/200 Index ended at a fresh 17-month high, supported by strong gains in the banking sector.
The nation’s big four banks all rose, with ANZ Banking Group gaining the most, up 0.65%.
Shares in surf-wear retailer Billabong tumbled 6%, taking its two-day losses to nearly 20% after the company slashed its annual earnings guidance on Wednesday.
Looking ahead, European stock market futures were mostly lower, as investors eyed ongoing U.S. budget talks.
The EURO STOXX 50 futures pointed to a loss of 0.25% at the open, France’s CAC 40 futures shed 0.2%, London’s FTSE 100 futures eased down 0.2%, while Germany's DAX futures pointed to a loss of 0.3% at the open.
Later Thursday, the U.S. was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and data on manufacturing activity in Philadelphia. In addition, the U.S. was to publish industry data on existing home sales.