Asian markets closed mostly higher on Friday, though many turned subdued and pared early gains as the trading day progressed. Investors maintained a positive outlook, buoyed by the Federal Reserve’s decision to cut interest rates by 50 basis points.
The Japanese market outperformed despite reducing some gains following the Bank of Japan’s decision to keep rates unchanged. The Nikkei 225 climbed 619.00 points or 1.67%, finishing at 37,739.50. Leading gainers included Tokai Carbon, Resonac Holding Corp, Kawasaki Heavy Industries, Tokyo Electron, Fujikura, Mitsui, Fast Retailing, Furukawa Electric, Fanuc Corp, Sumco Corp, and Mitsubishi UFJ Financial. Notable losers were NTT Data Corp, Kansai Electric Power, Keisei Electric Railway, Shimizu Corp., Taisei Corp, and Tobu Railway.
The Bank of Japan maintained its benchmark rate at around 0.25 percent, as expected, following its discontinuation of negative interest rates in March. The central bank noted moderate economic recovery, although some weaknesses remain. Economists, including Marcel Thieliant from Capital Economics, anticipate another rate hike of a quarter-point in October.
Japan's annual inflation rose to 3% in August, the highest level since October 23, up from 2.8% over the previous three months. The CPI increased by 0.5% in August, following a 0.2% rise in July. The core consumer price index also grew by 2.8% year-on-year, the highest since February.
Chinese stocks faced challenges after the People's Bank of China left its benchmark loan prime rate unchanged. The Shanghai Composite Index ended at 2,736.81, virtually unchanged from the prior closing level. The one-year loan prime rate was held at 3.35 percent, and the five-year LPR at 3.85 percent, despite the US Federal Reserve’s sharper-than-expected rate reduction.
Hong Kong's Hang Seng Index gained 245.41 points or 1.36%, settling at 18,258.57, close to 100 points below the session's high of 18,355.15.
In Australia, the benchmark S&P/ASX 200 reached a record high of 8,246.20 before closing at 8,209.50, up 17.60 points or 0.21%. The broader All Ordinaries Index added 20.20 points or 0.24%, ending at 8,437.20. Standout performers included Seek, Domino's Pizza Enterprises, Super Retail Group, Carsales.com, James Hardie Industries, Bluescope Steel, Reece, Seven Group Holdings, and Flight Centre, which gained between 2% and 4%. Telix Pharma soared over 8%, with Regis Resources, Aussie Broadband, and James Hardie Industries also closing significantly higher. Bank stocks noted modest gains, while IGO, Mineral Resources, Computershare, Sonic Healthcare, Orica, and Suncorp were among the notable losers.
South Korea's KOSPI Index rose by 12.64 points or 0.49%, closing at 2,593.44, with strong support for technology stocks. Hitron Systems, SNT Dynamics, Yuhan, Sajo Seafood, Boryung Pharma, JW Holdings, and YoungPoong saw gains ranging from 12% to 30%.
Meanwhile, markets in Singapore, New Zealand, and Indonesia ended weaker, whereas Malaysia's market closed modestly higher.
