Investing.com - Asian stock markets turned mixed during late Asian trade on Thursday, with markets in Hong Kong and Australia erasing earlier gains made on the back of upbeat Chinese manufacturing data and following the Federal Reserve’s decision to keep its loose monetary in place.
Markets in Japan outperformed the region to climb to the highest level since early September 2008, as market players looked ahead to the first policy speech by new Bank of Japan Governor Haruhiko Kuroda later in the day.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.2%, Australia’s ASX/200 Index ended down 0.2%, while Japan’s Nikkei 225 Index rallied 1.3%.
Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to 51.7 in March from a final reading of 50.4 in February.
The measure remains above 50.0, indicating an expansion in manufacturing activity.
Asian markets were higher earlier in the day after the Federal Reserve reiterated its commitment to its asset purchase program.
The Fed announced that it will leave monetary policy unchanged at the end of its two day policy meeting on Wednesday, in spite of recent signs that the U.S. recovery is gaining traction, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed Chairman Ben Bernanke said the central bank may gradually wind down the pace of its bond buying, but only after the labor market shows signs of being on a more stable footing.
In Tokyo, the Nikkei soared to a 53-month high in Tokyo as the yen came under heavy selling pressure ahead of a key press briefing by the new central bank governor.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Sony and Canon saw shares gain 1.8% and 1.3% respectively, while Toyota shares added 1%.
Japanese megabanks were also higher, with stocks of the nation’s largest lender Mitsubishi UFJ Financial Group rising 1.6%, while Sumitomo Mitsui Financial brokerage firms Nomura Holdings and Daiwa Securities jumped 2.3% and 4.2% respectively.
Meanwhile, in Hong Kong, the Hang Seng erased earlier gains, weighed down by a heavy loss in index heavyweight Tencent Holdings.
China’s largest internet service provider saw shares tumble 3.8% despite reporting a 37% increase in fourth-quarter profit. Investors sold the stock after Deutsche Bank and CLSA downgraded the internet giant.
Index heavyweight HSBC Holdings saw shares declined 0.2%, as negotiations aimed at finding an alternative solution on a bailout deal for Cyprus continued after the parliament rejected a controversial bank deposit tax in a vote on Tuesday.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Elsewhere, in Australia, the benchmark ASX/200 Index inched down to the lowest level in five weeks, amid political uncertainty over Prime Minister Julia Gillard's leadership.
Prime Minister Julia Gillard had agreed to call a vote later in the day to determine the leadership of the ruling Labor Party and the nation.
Losses were limited as miners were boosted by the upbeat Chinese manufacturing data. Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Rio Tinto and BHP Billiton rose 0.9% and 0.8% respectively, while iron ore maker Fortescue Metals Group jumped 2.9%.
Looking ahead, European stock market futures pointed to a steady open, amid uncertainty over a bailout deal for Cyprus.
The EURO STOXX 50 futures pointed to a gain of 0.1% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures dipped 0.1%, while Germany's DAX futures pointed to a flat open.
The euro zone was to produce preliminary data on manufacturing and service sector activity later in the day.
The U.S. was to release the weekly government report on initial jobless claims, as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.
Markets in Japan outperformed the region to climb to the highest level since early September 2008, as market players looked ahead to the first policy speech by new Bank of Japan Governor Haruhiko Kuroda later in the day.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.2%, Australia’s ASX/200 Index ended down 0.2%, while Japan’s Nikkei 225 Index rallied 1.3%.
Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to 51.7 in March from a final reading of 50.4 in February.
The measure remains above 50.0, indicating an expansion in manufacturing activity.
Asian markets were higher earlier in the day after the Federal Reserve reiterated its commitment to its asset purchase program.
The Fed announced that it will leave monetary policy unchanged at the end of its two day policy meeting on Wednesday, in spite of recent signs that the U.S. recovery is gaining traction, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Fed Chairman Ben Bernanke said the central bank may gradually wind down the pace of its bond buying, but only after the labor market shows signs of being on a more stable footing.
In Tokyo, the Nikkei soared to a 53-month high in Tokyo as the yen came under heavy selling pressure ahead of a key press briefing by the new central bank governor.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Sony and Canon saw shares gain 1.8% and 1.3% respectively, while Toyota shares added 1%.
Japanese megabanks were also higher, with stocks of the nation’s largest lender Mitsubishi UFJ Financial Group rising 1.6%, while Sumitomo Mitsui Financial brokerage firms Nomura Holdings and Daiwa Securities jumped 2.3% and 4.2% respectively.
Meanwhile, in Hong Kong, the Hang Seng erased earlier gains, weighed down by a heavy loss in index heavyweight Tencent Holdings.
China’s largest internet service provider saw shares tumble 3.8% despite reporting a 37% increase in fourth-quarter profit. Investors sold the stock after Deutsche Bank and CLSA downgraded the internet giant.
Index heavyweight HSBC Holdings saw shares declined 0.2%, as negotiations aimed at finding an alternative solution on a bailout deal for Cyprus continued after the parliament rejected a controversial bank deposit tax in a vote on Tuesday.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Elsewhere, in Australia, the benchmark ASX/200 Index inched down to the lowest level in five weeks, amid political uncertainty over Prime Minister Julia Gillard's leadership.
Prime Minister Julia Gillard had agreed to call a vote later in the day to determine the leadership of the ruling Labor Party and the nation.
Losses were limited as miners were boosted by the upbeat Chinese manufacturing data. Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Rio Tinto and BHP Billiton rose 0.9% and 0.8% respectively, while iron ore maker Fortescue Metals Group jumped 2.9%.
Looking ahead, European stock market futures pointed to a steady open, amid uncertainty over a bailout deal for Cyprus.
The EURO STOXX 50 futures pointed to a gain of 0.1% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures dipped 0.1%, while Germany's DAX futures pointed to a flat open.
The euro zone was to produce preliminary data on manufacturing and service sector activity later in the day.
The U.S. was to release the weekly government report on initial jobless claims, as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.