Asian Markets Mixed Amidst China Euphoria, BoJ Pivot Fears

Equity markets in Asia closed on a mixed note on Friday as the euphoria generated by China’s surprise announcement of a 50-basis points cut in the reserve requirement for banks faded. Fears of a monetary policy pivot by the Bank of Japan dampened sentiment in the Nikkei.

China’s Shanghai Composite Index gained 0.14 percent to finish trading at 2,910.22. The day’s trading ranged between 2,924.31 and 2,890.48. The Shenzhen Component Index however slipped 0.96 percent to close at 8,771.44.

The Japanese benchmark Nikkei 225 plunged 485 points or 1.34 percent to end trading at 35,751.07. The day’s trading range was between 36,060.40 and 35,687.58.

Ferro-nickel business Pacific Metals was the top gainer with a surge of 14.4 percent. Rakuten rallied 3.5 percent. Nippon Sheet Glass and JGC Corp, both added more than 2 percent. Panasonic Corp also gained 1.6 percent.

Advantest Corp slipped 5.5 percent, followed by SUMCO Corp that slipped 4.5 percent. Tokyo Electric Power Co, Dainippon Screen Manufacturing, and Kawasaki Kisen Kaisha, all slipped more than 3 percent.

The Hang Seng Index of the Hong Kong Stock Exchange shed 260 points or 1.6 percent from the previous close to finish trading at 15,952.23. The day’s trading range was between a high of 16,240.96 and a low of 15,888.04.

Korean Stock Exchange’s Kospi Index rallied 0.33 percent to close trading at 2,478.56. The day’s trading range was between 2,453.45 and 2,502.61.

The NZX 50 of the New Zealand Stock Exchange shed 15 points or 0.12 percent to close trading at 11,875.03, versus the previous close of 11,889.63. Trading ranged between 11,816.91 and 11,889.63.

EROAD topped gains with a surge of 2.2 percent. Pacific Edge, Investore Property, Vital Healthcare Property Trust and Ryman Healthcare, all gained more than 1 percent.

NZX slipped 2.8 percent. Meridian Energy, EBOS and Manawa Energy, all declined more than 2 percent. Chorus also slipped 1.9 percent.

Wall Street had closed on a positive note on Thursday amidst a…