Asian stocks closed mixed in hesitant Friday trading, with investors wrong-footed as Wall Street reversed its view that the latest comments from the US Federal Reserve meant a US interest rate cut was on the cards, dealers said.
Markets rose sharply on Thursday as investors welcomed a change in emphasis in the Fed statement after its interest rate meeting which was taken to mean the central bank was now more worried about the economy slowing than inflation.
If that was the case, then the Fed would be more likely to cut interest rates sooner rather than later but on a second glance, Wall Street turned more cautious, noting the bank's warning that inflation remained an issue which could go either way.
"The [Fed] statement did remove the bias towards tightening [interest rates] but there was no hint of any rate cut soon. It was modestly positive news at best," Dick Green at Briefing.com said.
As the view changed, US stocks managed only very modest gains, making for an uncertain start to the Asian day, with investors deciding there was little to be gained from any aggressive trades ahead of the weekend.
Kuala Lumpur, a market which has been a laggard overall, was the best performer, rising 1.14 percent to extend gains to a seventh straight day.
TAIPEI
Taiwanese share prices closed 0.46 percent higher, extending Thursday's gains as foreign investors maintained their buying interest, dealers said.
They said the market, however, appeared to lack enough support to get much nearer the psychologically significant barrier of 8,000 points, with investors awaiting more convincing leads to justify aggressive buying following a mixed performance on Wall Street overnight.
The weighted index rose 35.65 points at 7,859.32, after trading between 7,806.89 and 7,879.09, on turnover of NT$109.02 billion (US$3.30 billion).
Risers led decliners 605 to 460, with 243 stocks unchanged.
"Although people could not bring themselves to push the upside aggressively, there was no reason for them to decisively pull out either," Jih Sun Securities Investment (
Lien said the local bourse is likely to keep up a generally positive tone so long as international markets and Wall Street provide that lead.
Given that foreign investors are positive on the Taiwan market again, there is a good chance it should breach 8,000 points before long, he said.
At the same time, the market will face a testing time as companies start reporting their first quarter to March results, he said, adding that the key techs normally go through a seasonally weak period in the first three months.
TOKYO
Japanese share prices closed up 0.35 percent, extending their winning streak to a fourth trading day as a weaker yen gave a lift to exporters, dealers said.
The Tokyo Stock Exchange's benchmark NIKKEI-225 index of leading shares gained 61.41 points to 17,480.61.The TOPIX index of all issues on the Tokyo Stock Exchange's first section advanced 10.14 points or 0.59 percent to 1,741.94.
HONG KONG
Hong Kong share prices closed flat, consolidating strong gains made this week as the market recovered lost ground on the back of solid results from the major companies, dealers said.
Buying momentum turned weak Friday, however, with most of the top company results now out and trade was cautious as the market awaited key housing data in the US after Wall Street provided no lead overnight.
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