Stock market indexes halted a four-day rally in Tokyo, and investors looked ahead to the release of minutes of meetings from the Bank of Japan and Tokyo's inflation data.
China stocks extended their rally for the second day in a row after the central bank lowered its one-year loan prime rate following a wide range of stimulus measures announced on Tuesday.
Japan's activities in the service sector accelerated, but in the manufacturing sector they contracted, highlighting the trend in place in the year so far.
The People's Bank of China announced a wide range of measures to inject liquidity into the banking system, facilitate investor confidence, and support the property market. However, the monetary stimulus alone is likely to fall short in reviving market sentiment amid weak consumer sentiment.
Stock market indexes extended weekly gains in Tokyo after the Bank of Japan held its short-term rates steady and reiterated its hawkish outlook. Japan's core consumer price inflation accelerated for the fourth month in a row in August.
The yen edged lower after the U.S. Federal Reserve announced a larger rate cut, shrinking the rate differential with the Japanese government bonds. The Bank of Japan is expected to hold rates steady but signal future rate hikes.
The Hong Kong Monetary Authority lowered its base rate by 50 basis points, following the easing by the U.S. Federal Reserve. But HSBC and Bank of China passed on only 25 basis points to their customers, the first rate cut since November 2019.
Stocks lost early momentum in Tokyo ahead of rate decisions from the U.S. Federal Reserve and the Bank of Japan. Japan's international trade balance swung to a deficit for the second month in a row after severe weather limited growth in exports.
LIC lowered its sake in DCM Shriram. Torrent Power won a project to build a pumped hydro storage facility in Maharashtra. Spicejet disclosed a large outstanding tax and provident fund payment as the struggling airline launches a secondary offering.
Benchmark indexes in Tokyo dropped as much as 2% ahead of the Bank of Japan's rate decisions on Friday, led by volatile tech stocks. The yen hovered near this year's high.
Property stocks in Hong Kong advanced ahead of a possible U.S. Federal Reserve's rate cut On Thursday. Midea Group's initial public offering soared as much as 10% on the first day of trading in Hong Kong.
