Investing.com – Asian stock markets were mixed in afternoon trade on Thursday, as most of the Asian equities retreated following a drop in their U.S. counterparts while investors await Federal Reserve Chairman Jerome Powell’s second appearance before the Senate Banking Committee later in the day.
Comments from the Fed’s new chief sent Wall Street tumbling for the second session in a row, with the Dow and the S&P 500 closed 1.5% and 1.1% lower respectively.
Mainland Chinese markets outperformed their regional peers as the Shanghai Composite gained 0.1% and Shenzhen Component 0.76% higher by 12:45am ET. The Caixin manufacturing Purchasing Managers' Index (PMI) came in at 51.6, exceeding the expected 51.3 and was cited as tailwind for local stocks. Meanwhile, State media reported that the country has approved a list of nominees to fill top government jobs during a three-day conclave that ended Wednesday in Beijing, but the report did not reveal any names. The National People’s Congress (NPC) is set to hold its first annual session in Beijing next Monday.
Japan’s Nikkei led the region lower and closed 1.8% lower. Bank of Japan’s policy board member Goushi Kataoka called for more easing efforts to achieve the central bank’s 2% inflation target. Speaking at a meeting in Okayama, Kataoka said the price situation in Japan was no longer deflationary, but the chance of inflation hitting the 2% target during the 2019 fiscal year is low.
“The inflation environment in Japan differs substantially from that in the United States and major countries in Europe,” said Kataoka. “I believe that, in Japan, there is still a long way to go before considering a change in monetary policy stance,” he added.
Hong Kong’s Hang Seng Index traded 0.4% lower. Index heavyweight Tencent Holdings Ltd (HK:0700) outperformed and gained 2.0% in morning trade.
Down under, Australia’s S&P/ASX 200 closed 0.71% lower after the country’s Q4 seasonally adjusted CAPEX fell 0.2% QoQ, missing the market estimates of a 0.9% growth. The Australian dollar was put under pressure following the release of the data and has fallen to the lowest level this year.
Elsewhere, Singapore-listed commodities trade Noble Group Ltd (SI:NOBG) made headlines after it reported a $4.9 billion annual loss for 2017, versus a net profit of $8.7 million a year earlier. The company said it was still in talks with creditors on a debt deal.
South Korea’s markets were closed Thursday for a holiday.