The Japanese yen drifted higher and hovered near its 2024 high following hawkish comments from Bank of Japan's second board member this week, pressuring equities. The Nikkei and the Topix gained trimmed weekly gain to less than 3%.
Benchmark indexes in Hong Kong and the mainland traded higher amid mortgage rate cut speculation but fell for the week amid lingering worries about the economic growth and lack of progress in alleviating the property market slump.
Japan indexes rebounded sharply after falling in the previous two sessions, tracking the rebound in tech stocks on Wall Street. Producer price inflation slowed in August, and sentiment among large manufacturing companies improved in the third quarter in Japan.
Stocks in Hong Kong advanced but struggled in Shanghai as investors focused on global rate cuts. Alibaba Group advanced after mainland investors snapped up its stock on the first day of trading on Stock Connect.
The Hang Seng index in Hong Kong dropped to a one-month low after crude oil prices sank to three-year lows amid demand growth worries in China and the U.S.
Stocks in Tokyo extended gains for the second day in a row, tracking gains on Wall Street. However, market gains were muted by the worry that the Bank of Japan is likely to raise rates before the end of the year.
China indexes diverged, and the strong export performance was overshadowed by domestic economic growth worries. Exports surged more than expected in August, driven by high demand for smartphones, electric vehicles, and ship vessels.
Benchmark indexes in Tokyo recovered from the earlier losses of 3% to close down 1%, tracking the decline on Wall Street. Japan revised lower its second quarter GDP growth, and the overall bank lending rose in August.
Japan's benchmark indexes registered sharp losses in the week as the rising yen and renewed worries about the U.S. economic slowdown dominated market sentiment.
Stocks in Shanghai and Shenzhen headed lower on the final day of a volatile week. Hong Kong issued its most severe weather alert of the year, forcing all business activities to a halt.
Japan's nominal wages rose faster than inflation for the second month in a row, supporting the case for a rate hike later in the month. The yen advanced and extended the weekly rise to 2%, keeping the stock market enthusiasm in check.
China indexes remained under pressure and extended weekly losses. Property stocks advanced in the hopes of a rate cut later this month, and oil producers fell after the crude oil price dropped to an eight-month low.
Japan indexes plunged as much as 5% following widespread losses in overnight trading in New York after U.S. economic slowdown worries resurfaced. Japan's service sector expanded for the seventh month in a row in August, but the growth rate moderated.
