SINGAPORE – Stocks in Asia-Pacific rose on Friday after heavy losses in some regional markets the previous trading day, as investors continue to assess the impact of a potentially faster-than-expected policy tightening. US Federal Reserve.
The Nikkei 225 rose 0.55%, partially recovering from its nearly 3% decline on Thursday. The Topix index rose 0.37%.
Mainland China stocks traded in positive territory as the Shanghai composite climbed around 0.2% while the Shenzhen component edged up 0.334%. Hong Kong’s Hang Seng Index jumped 0.76%.
South Korean Kospi gained 1.12%. Australian stocks were higher in morning trading, with the S & P / ASX 200 rising 1.54%.
The MSCI’s largest Asia-Pacific stock index outside of Japan traded up 0.67%.
Markets were spooked earlier in the week and fell sharply after minutes from the December Fed meeting showed central bank officials were prepared to aggressively cut political aid.
The yield on the benchmark 10-year US Treasury bond hit 1.75% on Thursday, last standing at 1.7158% – still much higher after ending 2021 at 1.51%. Yields move in the opposite direction to prices.
Fall in real estate stocks in China
HOng Kong-listed shares of Chinese real estate companies fell on Friday after Reuters reported developer Shimao Group defaulted on a fiat loan, rekindling concerns about the industry.
Shimao shares in Hong Kong fell 16.1%, while China Evergrande Group fell 2.42% and Sunac fell 5.05%. The Hang Seng Properties Index traded down 0.98%.
Overnight on Wall Street, the Dow Jones Industrial Average lost 170.64 points to 36,236.47 while the S&P 500 lost around 0.1% to 4,696.05. The Nasdaq Composite slipped 0.13% to around 15,080.87.
Currencies and oil
The US dollar index, which tracks the greenback against a basket of its peers, was at 96.22, holding above lower-than-96 levels seen earlier this week.
The Japanese yen was trading at 115.93 per dollar, stronger than levels above 116 against the greenback seen yesterday. The Australian dollar was at $ 0.7176 after yesterday’s drop above $ 0.72.
Oil prices were higher on the morning of Asian trading hours, as international benchmark Brent crude futures rose 0.6% to $ 82.48 a barrel. US crude futures gained 0.64% to $ 79.97 per barrel.