Asian stocks fluctuated in a narrow range as investors avoided taking on risk before key US payrolls data that may provide hints on the path of interest rates in the world’s largest economy.
The MSCI Asia Pacific Index was little changed at 138.16 on Friday as 50-day volatility dropped to the lowest since June last year. The gauge of Asian companies has been in a holding pattern this week, as investors turned their attention to the Friday payrolls data after US Federal Reserve Chair Janet Yellen indicated the case for an interest-rate increase was getting stronger.
“All eyes are clearly focusing on the nonfarm payrolls data,” James Woods, a strategist at Rivkin Securities in Sydney, said by phone. “Even if we do see a strong reading in the payrolls, I don’t really expect that the Fed would act in September. The recent data has been improving and it’s certainly a good sign, but its not enough yet to suggest that they have to hike imminently.”
Weaker-than-forecast US manufacturing data on Thursday raised concerns that the patchy growth in the economy might prompt the Fed to hold rates for longer. Odds that the Fed will boost rates this month have fallen to 34 percent from 42 percent at the end last week, while traders are betting there is a 60 percent chance of tightening in December.
Japanese shares swung between gains and losses on Friday before finishing higher to extend the week’s advance to 4.1 percent, their best performance since mid-July. Automakers and banks underpinned gains this week on the back of a weaker yen.
Taiwanese shares trended lower on Friday, falling below the 9,000-point mark to close down 0.2 percent at 8,987.55. The weighted index dipped 1.6 percent from 9,131.72 on Friday last week.
While the broader market faced downward pressure for most of the session, select large-cap stocks benefited from bargain hunting and lent support to the index, dealers said.
Acer Inc (宏碁) jumped 7.3 percent to NT$15.40, the most in the MSCI Asia Pacific Index, as the company unveiled a slew of new products at the IFA exhibition in Berlin.
Hon Hai Precision Industry Co (鴻海), which went ex-dividend on Friday, distributing NT$4 in cash and 10 percnet in stock, rose 1.9 percent to NT$77.20, with about 158.3 million shares changing hands. The trading volume was the stock’s highest in 45 months.
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock on the local market, gained 0.6 percent to end at NT$174.50, while chip designer MediaTek Inc (聯發科) fell 2.2 percent to NT$245.50.
First Financial Holding Co (第一金) rose 1.5 percent to NT$16.45, CTBC Financial Holding Co (中信金) gained 1.1 percent to NT$18.45 and Fubon Financial Holding Co (富邦金) rose 0.9 percent to NT$44.55.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$407 million (US$12.8 million) worth of shares on the main board on Friday.
Hong Kong’s Hang Seng Index advanced 0.5 percent to the highest in a year, capping a 1.6 percent gain for the week. CK Hutchinson Holdings Ltd (長江和記) rose the most since September last year after gaining approval from the EU to create Italy’s largest wireless provider. The Hang Seng China Enterprises Index of mainland shares added 0.8 percent, taking this week’s advance to 1.4 percent.
South Korea’s KOSPI gained 0.3 percent after the nation’s economy grew a higher-than-expected 0.8 percent in the second quarter.
Thailand’s SET Index sank 1.2 percent and Singapore’s Straits Times Index fell 0.6 percent to a two-month low. Equity gauges in the Philippines, India and Indonesia climbed at least 0.3 percent.
Australia’s S&P/ASX 200 Index dropped 0.8 percent. New Zealand’s S&P/NZX 50 Index closed little changed.
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