Asia houses were mixed in morning trade on Friday, as U.S. markets broke a new record, with positive news on the trade movement further boosting sentiment.
Mainland Chinese stocks rose in early trade. The Shanghai composite was up 0.18%, while the Shenzhen component originate 0.25%. The Shenzhen composite edged up 0.23%.
China on Friday left its new lending benchmark — the loan prime rate — unchanged, as envisaged, after it kept rates of medium-term loans steady earlier this month.
Hong Kong’s Hang Seng token also jumped, rising 0.38%.
Japan’s Nikkei 225, however dipped 0.21%, and its Topix index edged down 0.28%. The state’s core consumer inflation rose 0.5% in November from a year earlier, according to government data on Friday — in any event far from its elusive 2% target.
In South Korea, the Kospi went into positive territory, rising 0.28%.. Australia’s S&P/ASX 200 level 0.21% in the morning.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.11%.
Chinese President Xi Jinping on Friday is also set to intimate measures targeted at diversifying Macau’s casino-dependent economy. Those are expected to include a new yuan-denominated stock exchange, correspondence to a Reuters report.
Japanese autos tumble
Positive trade news further boosted sentiment, after a new North American shoppers deal was passed in the U.S. House of Representatives on Thursday. The deal is expected to be approved by the Senate next year. The United States-Mexico-Canada Contract replaces the North American Free Trade Agreement (NAFTA)
But Japanese autos took a tumble in response. The new lot included a requirement that 75% of auto parts come from North America, up from the previous 62.5% instructed by NAFTA.
While those rules are aimed at substantial increases in domestic production, that’s likely to hit automakers in Japan. Various Japanese automakers have production bases in Mexico. They manufacture cars and trucks in the North American country for export, according to data from Mexico’s auto industry association AMIA.
Toyota tumbled 1.28%, Nissan and Mazada helpless about 1%, and Suzuki tumbled 1.66%. Mitsubishi was down 0.83%.
Oil and currencies
The U.S. dollar index, which tracks the greenback against a basket of its viscountesses, was last at 97.428, retreating from a high of 97.486 earlier.
The Japanese yen traded at 109.30 against the dollar, invigorating from levels above 109.5 earlier.
The Australian dollar last changed hands at $0.6894, strengthening after much stronger-than-expected grinds data on Thursday. It was hovering around levels of 0.685 earlier.
Oil prices didn’t budge much during the morning of Asian pursuit hours. U.S. crude fell marginally 0.15% to $61.09 , while Brent crude was flat to $66.55 per barrel.
Here’s the financial calendar for Wednesday (all times in HK/SIN):
4:30 p.m. Hong Kong’s consumer price index