Shanghai stock benchmark hits
China stock edged up on Thursday, led by gains in new energy sector shares, while investors awaited key economic data due on Friday.
The Shanghai Composite index was up 0.7 percent at 4,029.50 to its highest since 2015 and ended a two-day decline. China’s blue-chip CSI300 index climbed 1.2 percent.
Leading gains, the CSI New Energy Vehicle Index surged 6.2 percent to a three-year high, and the New Energy Index rallied 4.7 percent in its biggest single-day gain in two weeks.
Japan’s Nikkei drops 2pc
Japan’s Nikkei share average fell by as much as 2 percent early on Friday, with tech stocks tracking overnight declines for Wall Street peers as investors worried about sky-high valuations.
The Nikkei was down 1.8 percent at 50,356.47 about 12 minutes into the trading day.
The broader Topix lost 1 percent to 3,348.11.
Shares of artificial intelligence-linked companies led declines, with startup investor SoftBank Group sliding 6.7 percent, and chip-testing equipment maker Advantest dropping 3.8 percent.
South African rand pulls back from rally
The rand pulled back from a rally that had lifted it to its strongest level in more than two years, as traders locked in profits on Friday and awaited S&P Global’s scheduled review of South Africa’s sovereign credit rating with caution.
At 0824 GMT, the rand traded at 17.1250 against the dollar , about 0.4 percent weaker than Thursday’s close.
South Africa was first downgraded to “junk status” in 2017, following the firing of respected finance minister, Pravin Gordhan, by former president Jacob Zuma and the ensuing policy instability.
The economic calendar next week will feature October consumer inflation figures and September retail sales data on Wednesday, followed by the central bank’s interest rate decision on Thursday.
On the Johannesburg Stock Exchange, the Top-40 index was last down 1.6 percent, also shedding some of its recent gains.
South Africa’s benchmark 2035 government bond weakened in early deals, as the yield rose 6 basis points to 8.655 percent.
Australia stocks sink in sea of red
Australian shares fell nearly 1.5 percent on Friday, sinking into a sea of red and hitting their lowest level since mid-July, as losses in miners and financials combined with fading hopes for a domestic rate cut this year weighed on the benchmark.
The S&P/ASX 200 index fell 1.5 percent to 8,623.30 by 2348 GMT.
The benchmark fell 0.5 percent on Thursday.
For the week, the index has shed about 1.7 percent, on track for its third straight weekly decline, as weakness in major banks following Commonwealth Bank’s earnings and Thursday’s jobs data dampened sentiment.
The labor report reinforced expectations that the Reserve Bank of Australia will hold rates steady for longer, curbing hopes of a cut this year.
Higher-than-expected inflation readings earlier this month had already cast doubt on the likelihood of near-term easing, prompting economists to push back forecasts for any policy shift.
Sri Lankan stocks snap 7-day winning streak
Sri Lankan shares closed lower on Thursday, with financials and communications services leading broad-based losses.
The CSE All Share index settled down 0.8 percent at 23,461.46, snapping seven-straight sessions of gains.
Mercantile Investments & Finance PLC and Senkadagala Finance PLC were the top losers on the CSE All Share index, falling 8 percent each.
Trading volume on the CSE All Share index fell to 167.8 million shares from 190.4 million in the previous session.
The equity market’s turnover fell to 6.42 billion Sri Lankan rupees (USD21.21 million) from 7.24 billion rupees in the previous session, according to exchange data.
India bonds dip
Indian government bonds fell further on Friday, as traders braced for a heavy debt supply and as a cash withdrawal operation from the central bank took the market by surprise.
The yield on the benchmark 10-year note was at 6.5280 percent, as of 10:20 a.m. IST.
It rose 2 basis points to end at 6.5161 percent on Thursday. Bond yields rise when prices fall. New Delhi plans to raise 280 billion rupees ($3.2 billion) through sales of 15-year and 40-year bonds.
European shares close lower
European shares closed lower on Thursday, as investors shifted their focus to crucial US economic data following the end of the nation’s longest government shutdown, while Siemens fell after an underwhelming earnings report.
The pan-European STOXX 600 index ended down 0.6 percent at 580.67 points. It had logged an intraday record high earlier in the day. Germany’s DAX declined 1.4 percent, while Britain’s FTSE 100 lost 1.1 percent.
“Basically, it’s a fact of buy the rumour, sell the fact. Now that we’ve got the government shutdown, the longest in the US’s history, finished, people are taking profit,” said Axel Rudolph, senior technical analyst at IG Group.