China benchmark closes lower
China stocks ended lower on Thursday, reversing intraday gains that spurred the benchmark to a 10-year high, as investors booked profits from the sharp rally and the US rate cut optimism bets.
Shanghai Composite index was down 1.15 percent at 3,831.66, after earlier hitting 3,899.96, its highest level since August 2015.
Blue-chip CSI300 index was down 1.16 percent.
Following the Federal Reserve’s 25-basis-point rate cut, China’s central bank left a key rate unchanged on Thursday, as authorities appear in no rush to ease monetary settings.
China’s benchmarks may face short-term pressure, as the market had been trading on US rate cut expectations, which are now priced in, Nanhua Futures said in a note.
India stocks rise for 3rd week
India’s equity benchmarks fell on Friday as financials and IT stocks came under profit-booking, but still marked a third straight week of gains after a U.S. rate cut, local tax reductions and optimism over trade talks with Washington.
The Nifty 50 eased 0.38percent to 25,327.05 and the BSE Sensex .lost 0.47percent to 82,626.23 on Friday.
The two indexes added 0.9percent each for the week.
Fourteen of the 16 major sectors rose for the week. The broader small-caps and midcaps gained 2.9percent and 1.5percent, respectively.
“We have seen a good rally in the past few sessions driven by multiple factors, indicating a marked shift in market sentiment … the overall undertone remains bullish,” said Aamar Deo Singh, senior vice president at Angel One.
The U.S. Federal Reserve cut interest rates by 25 basis points on Wednesday in a widely-anticipated decision.
Lower U.S. interest rates make emerging markets like India attractive to foreign portfolio investors, as Treasury yields and the dollar typically decline in such a scenario.
European stocks poised to end event-packed week higher
European shares drifted higher on Friday and looked set to register small gains for an eventful week marked by crucial central bank decisions including the U.S. Federal Reserve’s widely expected interest rate cut.
The pan-European STOXX 600 edged up 0.3percent to 556.72 points, as of 0844 GMT, with rate-sensitive banks gaining 1.1percent.
Automobiles and parts also rose 1.2percent and led gains among sectors as Stellantis gained 4percent after Berenberg upgraded the carmaker to “buy” from “hold”, citing better U.S. inventory and upcoming product momentum for the broader sector.
The Fed cut rates by 25 basis points for the first time since December.
The dovish move helped riskier assets broadly, while technology stocks in Europe also saw renewed interest this week following losses in the previous two months.
The sector is set for weekly gains of 5.3percent – its largest in a year – underpinned by advances in German software maker SAP following upbeat comments from Jefferies’ analysts. A $5 billion deal between Intel and Nvidia across the Atlantic also aided sentiment.
Banks, healthcare stocks lift Australian shares
Australian shares rose on Friday, led by heavyweight banks and healthcare firms, as soft domestic labour data raised expectations for another interest rate cut this year.
The S&P/ASX 200 index advanced 0.5percent to 8,787.40, as of 0052 GMT. The benchmark index, however, was headed for its third consecutive weekly loss, down 0.9percent this week.
An unexpected decline in August employment data on Thursday signalled labour market weakness, bolstering the case for an interest rate cut by the Reserve Bank of Australia later this year.
Most analysts now anticipate the RBA to maintain rates at September’s meeting, with a potential reduction priced for November, with October’s third-quarter inflation data helping shape the central bank’s monetary policy stance.
Rate-sensitive financials advanced 0.4percent, with toplender Commonwealth Bank of Australia rising 1.1percent.However, the subindex is down 1.2percent for the week, set for its weakest weekly performance in two months.
Japan’s Nikkei enlarges record run ahead of BOJ decision
Japan’s Nikkei share average continued its winning ways on Friday, rising to a record before an expected hold on policy from the Bank of Japan.
The gains in Japan followed another record day on Wall Street after a rate cut by the Federal Reserve, which forecast more easing this year.
The Nikkei 225 Index jumped 1percent to 45,750.05 in early trading, reaching as high as 45,852.75.
The broader Topix climbed 0.8percent and was also at an all-time high.
Asian stocks to end big central bank week with gains
Asian shares are set to end a big central week in positive territory, buoyed by hopes of more monetary stimulus around the world, while the Nikkei notched a record aided by expectations the Bank of Japan would again skip a rate hike.
This week, central banks in the United States, Canada and Norway cut interest rates while the Bank of England held steady. The Bank of Japan is widely expected to keep its easy monetary policy unchanged on Friday amid domestic political uncertainties.
“With the past week’s central banks decisions in the rear-view mirror, it’s clear that no one’s been comfortable to surprise,” said James Rossiter, head of global macro strategy at TD Securities.
“Ongoing uncertainty is clearly cutting policymakers’ risk appetites, though we expect cuts from many central banks at their next meetings.”
Sri Lankan stocks gain
Sri Lankan shares closed higher on Thursday, helped by gains in consumer discretionary and financial stocks. The CSE All-Share index rose 0.91 percent to 20,965.26, gaining for a third straight session.
Hunter & Company PLC and Bansei Royal Resorts Hikkaduwa PLC were the top percentage gainers on the index, up 23.7 percent and 15 percent, respectively.
Trading volume on the index rose to 254.6 million shares from 238.8 million shares in the previous session.
The equity market’s turnover rose to 6.86 billion Sri Lankan rupees (USD22.7 million) from 6.61 billion rupees, according to exchange data.