ASIA MARKETS: Asian Tech Stocks Jump, But Broad Gauges End Mixed

By Ese Erheriene Features Dow Jones Newswires

Nikkei slips as yen rises; Tencent hits record highs after strong earnings

Continue Reading Below

Asian equity benchmarks finished mixed Thursday after initially extending this week's gains a bit further as minutes of the Federal Reserve's meeting revealed a deeper-than-expected divide on the timing of the next interest rate increase.

The prospect of a slower pace of additional rate increases pressured the dollar in Wednesday afternoon U.S. trading, and the subsequent gain in the yen weighed on Japanese stocks Thursday. The Nikkei finished down 0.1% as the dollar lost ground against the yen in Asian trading.

Still, this year's rebound for the yen doesn't seen to be hitting Japan's economy. Exports rose 13% in July from a year ago, the eighth-straight monthly gain, government data showed Thursday. Japanese stocks often fall when the yen strengthens amid fears that a stronger currency will hit exporters -- a key facet of the country's economy.

Stock gauges elsewhere in Asia showed small gains or loses Thursday, following modest gains in U.S. equities overnight.

While Rob Carnell, head of Asia research at ING, said, "Confusion reigns at the Federal Reserve," he added Asian markets were likely to take comfort in additional rate increases are likely to come "at worst at a very-modest pace."

Continue Reading Below

Australia's main index gave up 0.1%, while South Korea and New Zealand closed higher by 0.6% and 0.2%, respectively, the latter having set record closing highs each of the past two sessions. Meanwhile, helping Korea's Kospi was a 1.8% rebound in Samsung (005930.SE) amid broad early strength for tech stocks in general.

In Taiwan, Pegatron (4938.TW) , Foxconn (2354.TW) and Catcher (2474.TW) rose more than 1% each, while the Taiex index was up a more-modest 0.8%.

The region's biggest tech stock, Tencent (0700.HK) , jumped to fresh record highs in Hong Kong as its second-quarter results were notably stronger than analysts expected. It closed 1.9% higher. That helped limit losses for the Hang Seng Index , of which the messaging/gaming giant is the biggest component. The gauge closed down 0.2%.

Also strong Thursday were metals-related stocks amid a rebound in prices fueled by the weaker dollar. Rio Tinto (RIO) and Sumitomo Metal (5713.TO) rose 1.4% and 2%, respectively.

(END) Dow Jones Newswires

August 17, 2017 05:10 ET (09:10 GMT)