Asia Stocks Mixed as Australia Hits Record High on Bank Earnings; Nikkei Retreats
Asian stock markets traded mixed on Thursday, with Australia reaching a fresh record high on strong bank earnings, while Japanese shares pulled back from peaks as a stronger yen weighed.
Investors also assessed Australia’s July jobs data for clues on further rate cut prospects from the Reserve Bank of Australia (RBA). Broader Asian sentiment followed Wall Street’s upbeat tone, driven by growing expectations of a U.S. Federal Reserve interest rate cut next month.
Major U.S. indices closed higher on Wednesday, with the Nasdaq and S&P 500 both hitting new record highs. U.S. futures were steady during Asian trading hours.
Australia Hits Record High; Jobs Data Monitored
Australia’s S&P/ASX 200 index rose 0.8% to 8,996.80 points by 02:25 GMT, setting a new all-time high. Gains were fueled by the RBA’s 25 basis point rate cut earlier this week and strong corporate earnings.
Westpac Banking Corp (ASX:WBC) reported higher third-quarter profits, sending its shares up more than 6% and lifting the broader financial sector. Origin Energy (ASX:ORG) jumped over 7% to a decade high on better-than-expected annual results, while Suncorp (ASX:SUN) climbed 4% after reporting robust full-year earnings.
Jobs data showed Australia’s labor market rebounded in July, with the unemployment rate falling. The stronger jobs report could make the RBA cautious about further rate cuts after Tuesday’s reduction to 3.60%.
Nikkei Pulls Back from Record High
Japan’s Nikkei 225 fell 1.3% to 42,642.31, retreating from Wednesday’s record 43,451 after six consecutive days of gains. The broader TOPIX index slipped 1% from its record above 3,100 points.
While Japanese stocks had rallied on mild U.S. consumer inflation data — boosting expectations for a Fed rate cut in September — a stronger yen weighed on sentiment.
China and Hong Kong Gain; Other Markets Mixed
China’s Shanghai Composite index and the CSI 300 both rose 0.6%. Hong Kong’s Hang Seng index edged 0.2% higher.
Elsewhere, South Korea’s KOSPI dipped 0.2%, Singapore’s Straits Times Index fell 0.4%, and India’s Nifty 50 futures eased 0.1%.
