By Daniel Inman
A weaker yen helped Japanese stocks lead gains in Asia on
Thursday, while losses in mining stocks kept Australia in negative
territory.
The ongoing fiscal impasse in the U.S. remained at the
forefront, with investors concerned that Washington could pass the
deadline to raise the debt ceiling -- a move that could lead to a
default.
There were some small signs of progress in the deadlock after
news that President Barack Obama would meet House Democrats on
Wednesday and House Republicans on Thursday helped Wall Street
close in positive territory.
Stocks in Japan and South Korea followed these gains on
Thursday, with the Nikkei up 0.7%, Indonesia's JSX rising 0.7% and
the Philippines' PSE Composite adding 1%.
Asian markets have proved resilient this week against a backdrop
of Wall Street declines, with the region more receptive to good
news. Although the region started Tuesday and Wednesday lower, on
both days, many markets were able to reverse early losses and end
the day with gains.
Thursday was a little more mixed, with Australia, China and
South Korea staying in the red.
The Nikkei was helped by weakness in the yen, with the dollar
gaining 0.7% against its Japanese counterpart on Wednesday and
pushing higher Thursday. The greenback (USDJPY) last changed hands
at Yen97.71, compared with Yen97.35 late Wednesday in New York.
Australian stocks failed to join the regional gains, with the
market weighed by declines in mining stocks, which fell on the back
of overnight falls in commodity prices. Australia's S&P/ASX 200
fell 0.2%, with BHP Billiton (BHP) and Rio Tinto (RIO) down 1% and
0.5%, respectively.
There was some support from Bank of Queensland , which shot up
6.6% after announcing that it had returned to a A$185.8 million
profit for the 2013 financial year compared with a A$17.1 million
loss in the year before.
The Australian dollar (AUDUSD) got a short boost after a
surprise fall in the unemployment rate, with the currency rising as
high as 94.72 U.S. cents as improving jobs situation reduced
expectations that the Reserve Bank of Australia will cut rates
again. It was a short-lived bounce, with the currency sliding to
94.06 U.S. cents, as investors digested that employment had
actually grown less than expected.
Chinese stocks dipped ahead of economic data scheduled to be
released over the coming days. The Shanghai Composite dropped 0.9%
and the Hang Seng Index in Hong Kong was 0.8% lower.
Trade and inflation data out over the weekend and early next
week will provide investors a chance to see whether the economic
recovery seen in recent months has carried on to September. China's
September exports are likely to grow by 5.5% according to a Wall
Street Journal survey of 10 economists, suggesting that the
country's trade remains healthy.
South Korea's Kospi fell 0.1%.
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