MARKETS: Asian stock markets weak, yen strengthens

Asian stock markets were in a fluctuating mood on Thursday. The Asia Dow index was down 0.3 percent, but a gentle rise was also seen in some of the stock exchanges.

In Japan, the Nikkei index was down half a percent and the broader TOPIX index was down 0.3 percent. Among the industries, technology was in the deepest decline, at 0.7 percent. Basic industry and the energy sector were the only ones to rise, up by about half a percent.

The Hang Seng index of the Hong Kong stock exchange was barely rising and the CSI 300 index of large Chinese companies remained close to the previous closing level. In China, the mood was boosted by the pick-up in industry based on the purchasing managers’ index figure for October.

The Bank of Japan kept the key interest rate unchanged. In the spring, the central bank raised the key interest rate for the first time in years, and this year the key interest rate has been raised slightly to the positive side. However, market commentators expect the Bank of Japan to continue raising interest rates, even though interest rates are already being lowered in Europe and the United States.

“As long as there is an inflationary economic environment in Japan, we expect the central bank to gradually raise the key interest rate next year. We expect a rate hike at the December interest rate meeting and another hike at some point next year,” UBS Sumi Trust Wealth Managementin Japanese equity strategist Chisa Kobayashi commented to Bloomberg.

The Japanese yen had strengthened strongly against other major currencies on Thursday.

The yen had strengthened by 0.8 percent against the euro and the dollar and by 0.7 percent against the pound.

You got 1.085 dollars for the euro and 152.21 yen for the dollar.

The Euro Stoxx 50 index future was down 0.6 percent in anticipation of a red stock market opening in Europe.