Asian stocks closed mixed to firmer on Friday, finding support from lower oil prices which gave the airlines a sharp boost while trade overall was lackluster, in line with Wall Street, dealers said.
They said investors were largely content to sit out the day ahead of key US consumer inflation data and the lead it could give on what the US Federal Reserve may decide on interest rates at its meeting next week.
For the moment, lower oil and commodity prices are taken positively as working to reduce inflation and interest rates but the markets want reassurance, especially after senior Fed officials recently indicated monetary policy could still be tightened.
Dealers said that September can often be a difficult month for stocks and with the cycle clearly moving into a weaker phase as the global economy slows, sentiment has been volatile, changing rapidly from one bit of data to another.
They said it is not necessarily clear which outcome would be worse for stocks -- a continued slowdown in the US economy or higher inflation and interests -- and this likely explains the current choppy trade.
Taipei
Taiwan share prices closed 1.25 percent higher, bouncing back after early losses on continued political concerns as supporters and opponents of the president press ahead with rallies, dealers said.
Dealers said investors are concerned about possible escalation of the protests and confrontations even though up to now the demonstrations have been peaceful.
The weighted index was up 82.22 points at the day's high of 6,681.09, recouping all of Thursday's losses, on turnover of NT$56.65 billion dollars (US$1.72 billion). Risers led decliners 823 to 243, with 166 stocks unchanged. Financial stocks outperformed the broader market because there were seen as undervalued, dealers said.
President Securities (統一證券)manager Johnny Lee said that bargain-hunting emerged following recent weakness, with interest from foreign investors Thursday encouraging others to follow suit this session.
He said the thin trade, however, indicated that many investors remained on the sidelines, given lingering political worries.
"Recent political developments raised uncertainties and kept investors at bay," he said.
Tokyo
Japanese share prices closed 0.47 percent lower after the government revised down a leading economic index and as investors locked in recent profits ahead of a long weekend here, dealers said.
They said investors were reluctant to take aggressive positions with key US consumer price data due out later in the day which will be closely examined for a lead on interest rates in the world's largest economy.
The Tokyo Stock Exchange's benchmark NIKKEI-225 index fell 75.46 points to 15,866.93. The broader TOPIX index of all first-section stocks slipped 4.70 points or 0.29 percent to 1,593.43.
Losers led gains 1,038 to 543, with 120 stocks flat.
Volume was 1.42 billion shares, down from 1.56 billion Thursday.
An hour before the closing bell, the Cabinet Office said the index of leading economic indicators for July was revised down to 27.3 from the initial reading of 40. A reading above 50 indicates economic expansion over the subsequent three to six months, while a reading below 50 suggests contraction.
Figures earlier this week, showed weak revised industrial output and machinery orders for July.
RSS