Asia report: Markets mixed ahead of US payrolls report

(Sharecast News) - Asia-Pacific stock markets ended with mixed results on Friday, as investors across the region cautiously awaited pivotal US jobs data. The non-farm payrolls report, due out later in the global day, could influence the Federal Reserve's next decision on interest rates.

"Asian equity markets mostly traded with mixed results amid uncertainty in global markets," said TickMill market analyst Patrick Munnelly.

"Japan's Nikkei 225 showed slight gains, while Hong Kong's Hang Seng outperformed due to strength in various sectors.

"Market sentiment remained cautious as investors awaited the release of the US non-farm payrolls report, which is closely watched for its impact on economic conditions and interest rate expectations."

Munnelly said the report could provide clues about the Fed's future policy decisions and the trajectory of interest rates.

"Additionally, a potential meeting between US President Biden and Chinese President Xi Jinping added to hopes of stabilising US-China relations, although no confirmation was available."

Bourses mixed across region, China still closed

In Japan, markets were mixed, with the Nikkei 225 experiencing a slight dip of 0.26% to settle at 30,994.67, while the Topix marginally rose by 0.01% to 2,264.08.

Notable downward shifts on Tokyo's benchmark were seen in shares of Ube Industries, down 3.52%; Inpex, off 2.37%; and Shiseido, which lost 2.35%.

China's financial markets remained dormant due to the ongoing National Day holiday, having last traded on 28 September.

Over in Hong Kong, the Hang Seng Index presented a more optimistic picture, appreciating by 1.58% to finish at 17,485.98.

Alibaba Health Information Technology saw a robust increase of 4.12%, followed by Longfor Properties and Sino Biopharmaceutical, up by 3.7% and 3.37%, respectively.

South Korea's Kospi also leaned towards the positive side, charting a gain of 0.21%, closing at 2,408.73.

Firms in the pharmaceutical and chemical sectors witnessed a notable upswing, with Hanmi Pharm Co up 7.41%, Hanmi Science ahead 6.79%, and Kumho Petro Chemical rising 4.74%.

Moving to Australia, the S&P/ASX 200 experienced a moderate uptick of 0.41% to close at 6,954.20.

Ramelius Resources made headway of 6.02%, alongside a 3.49% rise for Genesis Energy and a 3.24% uplift for De Grey Mining.

In contrast, New Zealand's S&P/NZX 50 ended the day with a 0.2% fall, settling at 11,287.03.

Leading the losers in Wellington, Scales Corporation fell 2.91%, NZX lost 2.8%, and A2 Milk Company was off 2%.

On the currencies front, the dollar was last up 0.35% on the yen, trading at JPY 149.03, and advanced 0.11% against the Aussie to AUD 1.5716.

The greenback did, however, weaken marginally against the Kiwi, retreating 0.03% to change hands at NZD 1.6757/

Regarding oil prices, both benchmarks witnessed modest ascents, with Brent crude futures last up 0.12% on ICE at $84.17 per barrel and the NYMEX quote for West Texas Intermediate climbing 0.22% to reach $82.49.

Reserve Bank of India maintains steady interest rates

In economic news, the Reserve Bank of India (RBI) opted to sustain its interest rates at 6.5%, aligning with the projections of polling by Reuters.

In a statement during the monetary policy announcement, RBI Governor Shri Shaktikanta Das articulated the central bank's apprehensions regarding inflation and its potential implications on the nation's economic stability and growth trajectories.

In August, India saw a retail inflation rate of 6.83% year-on-year, with persistent food inflation significantly contributing to the surge.

"The Reserve Bank is concerned; we have identified high inflation as a major risk to macroeconomic stability and sustainable growth," Governor Das said.

"Our monetary policy remains resolutely focused on aligning inflation to the 4% target on a durable basis."

Reporting by Josh White for Sharecast.com.