Forexpros – Asian stock markets were mixed during late Asian trade on Thursday, as investors focused on monetary policy decisions from the European Central Bank and the Bank of England later in the day, amid expectations for further easing.
During late Asian trade, Hong Kong’s Hang Seng Index eased up 0.3%, Australia’s ASX/200 Index dipped 0.1%, Japan’s Nikkei 225 Index shed 0.3%.
Investors awaited the outcome of a policy meeting by the European Central Bank later Thursday. The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
The Bank of England is also set to update markets on its policy, amid hopes the central bank could increase the size of its government bond-buying program.
Market players were also eyeing Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
In Tokyo, the Nikkei was modestly higher during early trade, after Bank of Japan Governor Masaaki Shirakawa said the central bank will continue monetary easing.
Market participants are hoping that the BoJ could increase its asset purchases later this month.
But investors stayed cautious ahead of the ECB and BoE decisions.
Oil producers gave back some of the previous session’s strong gains. Shares in Inpex, the nation’s biggest oil explorer, declined 1.2%, while Japan Petroleum shares slumped 1.6%, after oil prices retreated after a recent rally.
Meanwhile, shares in Hong Kong edged higher in cautious trade, as property developers advanced.
Sino Land shares climbed 1.15%, Henderson Land Development added 1.8%, while Sun Hung Kai Properties rose 1.1%.
Elsewhere, shares in Australia held steady near a seven-week high, supported by gains in lenders.
Westpac Banking Group rose 0.95%, ANZ Banking Group added 0.6%, while Commonwealth Bank of Australia shares advanced 0.55%.
On the downside, BlueScope Steel dropped 1.5% after the saying it will pay a AUD21.2 million charge to the Australian Tax Office, pending the outcome of a dispute.
Looking ahead, the outlook for European stock markets was flat to lower, as investors focused on the outcome of a European Central Bank monetary policy decision later in the day.
The EURO STOXX 50 futures pointed to a loss of 0.15% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures were flat, while Germany’s DAX futures pointed to a flat open as well.
Later Thursday, Germany was to produce official data on factory orders, while Spain and France were to hold auctions of 10-year government bonds.
The U.S. was to publish a report by payroll processing firm ADP on non-farm employment change, followed by government data on unemployment claims. In addition, the Institute of Supply Management was to release a report on U.S. service sector activity.
Forexpros
