Volatile session for Asian stocks on Australian banks, Kuroda comments

Asia’s MSCI Pacific Index swung between gains and losses on Friday, falling 0.3% to 138.31 as of 15:10 in Tokyo, as Australian banks declined while the yen rose on Kuroda’s comments. The index is heading for a 2.9% decline this week, the most since May last year.

“The market is going up and down like a roller coaster. The fundamentals haven’t changed, but there are more and more investors are trading on momentum. The market will probably calm down in a week”, said Koji Toda from Resona Bank in Tokyo.

Bank of Japan governor Haruhiko Kuroda said the central bank had announced sufficient stimulus, pushing the yen higher, and bringing losses to exporters, yet a late rally on Wall Street gave a boost to some equities on Friday.

- Nikkei 225 closed 0.89% higher at 14612.45

- Topix closed 0.48% higher at 1194.08

Australian shares led losses across the region as the nation’s banks headed for the largest weekly drop in a year. The index also fell as Morgan Stanley downgraded its recommendation on Australian equities citing worsening earnings outlook.

- S&P/ASX 200 closed 1.56% lower at 4983.50

New Zealand’s NZX 50 closed 1.36% lower at 4526.24

In South Korea stocks rose as banking and auto stocks pushed the index higher. Kospi rebounding from the volatile session seen on Thursday in which it slumped 1.2%. As the yen advanced, exporters found support, with Hyundai and Kia rising 0.7%.

- Kospi closed 0.22% higher at 1973.45

In Hong Kong stocks fell but the better than expected earnings from PC maker Lenevo limited the losses, meanwhile in China stocks rose, joining the broader market upwards amid a correction following the biggest slump in a month yesterday.

- Hong Kong’s Hang Seng closed 0.23% lower at 22618.67

- China’s Shanghai Composite Index closed 0.58% higher at 2288.53