Asian Shares Mixed; Stronger Yen, Aussie Dollar Put Pressure on Local Stocks
18 August 2016 - 3:20PM
Dow Jones News
Shares in Asia were mixed Thursday, with stronger regional
currencies putting pressure on some stocks, while China's plans to
further open its equities market provided a delayed boost.
The Nikkei Stock Average was hit by a stronger yen, falling 0.2%
in morning trade. The yen broke below the 100 level versus the U.S.
dollar. Elsewhere, Australia's S&P/ASX 200 edged down 0.4% as
its local currency strengthened following strong jobs data.
Hong Kong's Hang Seng Index was up 1.5%, Seoul's Kospi added
0.3%, while the Shanghai Composite Index gained 0.2%.
"The main mover [of markets] is the dollar falling," said Tareck
Horchani, deputy head of Asian Pacific sales trading at Saxo
Capital Markets.
Minutes from the U.S. Federal Reserve's July meeting, released
late Wednesday, reflected a split on the timing of an interest-rate
increase, diluting hopes among some investors who expected a more
hawkish tone.
Some investors had expected more clarity from the Fed over the
timeline for a rise after two officials waxed optimistic on the
economy earlier in the week.
Expectations of continued low interest rates sent the U.S.
dollar weaker, driving up some of the region's main currencies.
Shares of key Japanese auto makers were hit as a stronger yen
makes the country's exports more expensive. Mazda Motor Corp. was
down 2.3%, Toyota Motor Corp. fell 0.6% and Nissan Motor Co. shed
1.2% in Thursday's morning session.
In Hong Kong, the market threw caution to the wind over the
Shenzhen-Hong Kong Stock Connect program and stocks caught an
updraft.
China on Tuesday gave the green light to a stock-trading link
between Hong Kong and Shenzhen, which would let global investors
buy Shenzhen stocks.
"If you look at the sentiment, it is still a little bit
cautious," said Alex Wong, director of asset management at Ample
Capital Ltd, who manages a $100 million fund. "But I think they are
basically ignoring that and they are still trading on the
expectation that liquidity will be abundant and quality assets will
be supported," he said.
Shares of exchange operator Hong Kong Exchanges & Clearing
Ltd. rose 0.8%, rebounding from Wednesday's 4.7% decline.
Meanwhile, China shares were trading about flat as Beijing
signaled that its crackdown on speculative trading continues.
The head of China's insurance regulator said that some insurers
ignored consumer interest in offering insurance products that
actually served as a platform for investing.
Separately, the Economic Information Daily, which is affiliated
with the official Xinhua News Agency, wrote in a front-page opinion
article Thursday that the recent regulatory clampdown will "purify"
the stock market of speculative punts, restoring principles of
value investing.
Though such regulatory posturing had driven markets down before,
investors have become inured to such tough talk, say analysts. The
Shenzhen Composite Index was last up 0.2%.
--Yifan Xie, Kosaku Narioka and Saurabh Chaturvedi contributed
to the article.
Write to Ese Erheriene at ese.erheriene@wsj.com
(END) Dow Jones Newswires
August 18, 2016 01:05 ET (05:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.