By Chao Deng
Stocks rose to an eight-month high in Tokyo but retreated in
Hong Kong on Thursday, with the prospect of higher U.S. interest
rates and a weak Chinese property market in focus.
The Nikkei Stock Average rose 1.1% to 16067.57, the highest
level since January, as the U.S. dollar traded at Yen108.66, a new
six-year high, compared with Yen107.26 the same time Wednesday. A
weaker yen helps Japanese exporters.
In Hong Kong, the Hang Seng fell 0.9% to 24168.72 after data
showed that the average price of a new home in China slumped 1.1%
in August from the previous month, gaining pace from a 0.89% drop
in July. In the property sector, shares of China Resources Land
fell 2.8% to HK$17.36. Sino Land declined 2.1% to HK$12.98.
Moves across Asia also followed the U.S. Federal Reserve's
statement Wednesday that, with a gradual U.S. recovery on track, it
would end its bond-buying program in October as planned. Fed
Chairwoman Janet Yellen stopped short of signaling when it might
start raising interest rates, but rate projections released by the
Fed suggested officials might have a slightly more aggressive plan
in mind than previously thought.
"We see potentially financial stress and a rough ride for
emerging markets as the Fed starts to move," said Bob Baur, chief
global economist at Principal Global Investors. "Now we have China
slowing fairly dramatically, the Fed fairly close to doing
something, and the U.S. dollar has--to us--made a clear
breakout."
In Tokyo, Sony plunged 8.6% to Yen1,940.0 after saying Wednesday
that its expected loss this fiscal year was almost five times more
than estimated just four months ago. The electronics maker said it
expects to post a loss of Yen230 billion ($2.12 billion) in the
fiscal year ending in March. It was forced to write down the value
of its mobile communications unit after sales of smartphones fell
below expectations.
Australian shares recovered from a two-and-a-half month low,
having fallen sharply in the lead-up to the Fed's meeting. The
benchmark S&P/ASX 200 closed up 0.2% at 5415.8.
The Australian dollar fell again, changing hands at US$0.8945,
its lowest since March, compared with US$0.9070 late Wednesday.
National Australia Bank closed up 0.1% at A$33.21, but hit a
two-and-a-half month low of A$32.81 during the session, amid
uncertainty about the outcome of Scotland's independence vote
Thursday. While NAB has said it will seek to register Clydesdale
Bank in England if Scotland votes for independence, analysts have
questioned whether Clydesdale would enjoy the same level of
protection as its larger peers.
Kosaku Narioka, Mia Lamar and Gregor Stuart Hunter contributed
to this article.
Write to Chao Deng at Chao.Deng@wsj.com