Asian stock markets were mixed on Friday, as positive U.S. cues and a rebound in copper and oil prices failed to offset worries about growth and earnings. Anticipation of increased equity flows into emerging markets amid speculation that the Federal Reserve will maintain its ultra-loose monetary policy for a while helped support sentiment to a certain extent.
Japan's Nikkei average edged down 0.1 percent while the broader Topix index shed half a percent, as uncertain U.S. economic outlook and volatility in international commodity prices kept investors guarded. Utilities extended recent losses before Tepco's earnings report after the market close, offsetting the weak yen's positive effect on major exporters such as TDK and Olympus.
The outcome of Bank of Japan's policy meeting offered little surprise with the central bank leaving its benchmark interest rates unchanged and maintaining monetary stimulus to support its economy that has once again fallen into recession.
The central bank expects the Japanese economy to return to a moderate recovery path from the second half of this year, backed by an increase in exports reflecting the improvement in overseas economic conditions and by a rise in demand for restoring capital stock.
China's Shanghai Composite eased marginally, with low trading volumes underscoring a lack of conviction among investors to buy at current levels. Hong Kong's Hang Seng index posted a muted 0.2 percent gain.
The Australian market lost ground as a pull-back in commodity prices overnight amid signs of weakness in the U.S. economic recovery weighed on resource stocks. After outperforming regional markets in the previous session, the benchmark S&P/ASX 200 index closed down half a percent, while the broader All Ordinaries ended down 0.4 percent.
The government's announcement that it would raise the royalty rate on iron ore fines produced in the state also weighed on materials stocks, analysts said.
Although data on U.S. weekly jobless claims came in slightly better than expected, factory activity in the U.S. Mid-Atlantic region grew much more slowly than expected in May, the Philadelphia Federal Reserve Bank said yesterday, heightening concerns that the U.S. economic recovery may falter. Another report from the National Association of Realtors showed an unexpected decrease in existing home sales in the month of April.
Big miner BHP Billiton shed 1.7 percent, while rival Rio Tinto lost 1.1 percent and Fortescue ended down 0.8 percent. In the banking sector, ANZ declined 0.8 percent, Westpac lost 0.7 percent and Commonwealth eased 0.4 percent, but NAB edged up marginally. Oil producer Woodside Petroleum gained 0.7 percent after global giant Royal Dutch Shell said it would construct the world's largest first floating liquefied natural gas project in the Browse Basin.
South Korea's Kospi average rose 0.8 percent after finishing sharply lower a day before, as gains in technology and auto stocks overshadowed declines in banking and construction stocks. The local currency rose against the U.S. dollar.
Woori Finance and Shinhan Financial Group eased around 0.4 percent each and Hyundai Engineering & Construction fell 1.3 percent after South Korea's financial supervisor said it would advise banks to transfer distressed real-estate project financing loans to a new debt-clearing bank.
New Zealand's benchmark NZX-50 rose 0.2 percent to a fresh three-year high, with NZX leading the gainers after the Budget confirmed plans to sell stakes in state-owned enterprises to return the government's finances to surplus by 2015. Shares of the securities market operator soared 3.7 percent to an 18-month high.
Among the prominent decliners, PGG Wrightson , the rural services company recently taken over by Singapore's Agria Corp, plunged 5.7 percent, heavyweight Telecom fell 1.1 percent and utility Contact Energy slipped 0.3 percent. Fisher & Paykel Appliances fell 2.6 percent, as the strength of the New Zealand dollar continued to weigh on the company.
Elsewhere, India's benchmark Sensex was last trading up 1.4 percent, outperforming all regional peers, as selective buying in index heavyweights following robust results from engineering & construction giant Larsen & Toubro and softer food inflation data released a day before soothed to a certain extent worries about inflation and rising interest rates.
Indonesia's Jakatha Composite index rose 0.3 percent, while Singapore's Straits Times, the Malaysian KLSE and the Taiwan Weighted eased between 0.2 percent and 0.6 percent.
On Wall Street, the major averages witnessed choppy trading overnight before ending up by 0.2-0.4 percent as traders digested a mixed batch of economic data on jobless claims, existing home sales and regional manufacturing activity.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.