Asian Shares Mixed Despite Upbeat Chinese Trade Data

(RTTNews) - Asian stocks ended mixed on Thursday, with Japanese markets falling heavily as the yen hit a one-month high against the dollar on growing speculation that the Bank of Japan could end negative interest rates this month.

Chinese and Hong Kong markets also ended lower as rising U.S.-China tensions overshadowed better-than-expected trade data for the first two months of the year.

Gold hit a new record high, benefiting from a dip in the dollar index after Federal Reserve Chair Jerome Powell's signaled a possible rate cut later this year in his testimony before Congress.

Oil consolidated the previous session's gains after this week's EIA data showed steep draws of more than 4 million barrels each in crude and distillate stocks.

China's Shanghai Composite index dropped 0.41 percent to 3,027.40 after reports that the U.S. and its allies may further tighten restrictions on China's access to semiconductor technology.

The downside was capped after customs data revealed China's exports and imports grew more than expected in the first two months of 2024.

Exports registered an annual increase of 7.1 percent in January to February period while imports grew 3.5 percent, resulting in a trade surplus of $125.16 billion for the period.

China's central bank chief told reporters Wednesday there's room to cut banks' reserve requirement ratio. In another development, China's securities regulator said it would move to fix "market failures" in extreme cases.

Hong Kong's Hang Seng index fell 1.27 percent to 16,229.78 as investors tracked corporate earnings from China.

e-commerce firm JD.com surged 6 percent after beating fourth-quarter revenue estimates and initiating a $3 billion share buyback program.

Japanese markets lost ground while the yen firmed to a one-month high after the latest wage figures cemented expectations the Bank of Japan will hike interest rates for the first time since 2007.

The Nikkei average shed 1.23 percent to close at 39,598.71 while the broader Topix index settled 0.44 percent lower at 2,718.54.

Chip-testing equipment maker Advantest led losses to close 4.5 percent lower and Tokyo Electron fell 3.9 percent while lender Sumitomo Mitsui Financial Group rose 1.7 percent.

Seoul stocks eked out modest gains, with the Kospi average edging up 0.23 percent to 2,647.62. Samsung Biologics gained 1.4 percent after it entered into a $352.7 million agreement with Belgium-based biopharma firm UCB for the production of UCB's products.

Australian stocks advanced led by financial stocks as Wednesday's weak GDP data boosted rate cut bets. Gold miners also climbed as bullion prices hit a fresh record high. Woodside Energy fell 2.7 percent on going ex-dividend.

The benchmark S&P ASX 200 rose 0.39 percent to 7,763.70 and the broader All Ordinaries index settled up 0.46 percent at 8,026.70.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index finished marginally higher at 11,803.93.

U.S. stocks rose overnight after Powell signaled in testimony to a House of Representatives that the Fed is on track to cut interest rates "at some point this year" but officials need "greater confidence" inflation is moving sustainably toward 2 percent.

In economic releases, U.S. job openings fell marginally in January and private sector employment rose less than expected in February while the Fed's Beige Book survey showed the U.S. economy expanded at a modest pace in early 2024.

The tech-heavy Nasdaq Composite climbed 0.6 percent while the S&P 500 gained half a percent and the Dow edged up 0.2 percent.