Asia report: Markets mixed as oil retreats from four‑month high

(Sharecast News) - Asian stock markets were mixed on Thursday as oil prices continued to pull back from a four-month high.

As of 0920 BST, Japan's Nikkei 225 was up 0.33% at 64,136.25, while the Topix advanced 0.8% to 4,094.19, the Kospi was down 0.04% at 6,715.41 and the small-cap Kosdaq was 0.76% firmer at 822.18. Hong Kong's Hang Seng index was 0.52% lower at 24,586.16, while Mainland China's CSI 300 slipped 0.45% to 4,460.16 and Australia's ASX picked up 0.41% to 8,732.40. Singapore's Straits Times Index was up 0.4% at 5,657.75.

Asian currencies weakened against the dollar on Thursday after the US Federal Reserve's latest rate hike, with the yen slipping into the 156 range as policymakers in Washington struck a hawkish tone on the outlook for further tightening.

Brent was down 1.57% at $104.17 a barrel after settling at $107.77 on Wednesday, its highest closing price since mid-May, as threats to Saudi exports grew after increasing attacks by Iran-backed Houthi rebels on Red Sea facilities.

Japanese bond yields retreated slightly on Thursday, with the 10-year government bond dipping a little over one basis point to 2.987% after hitting 3.042% earlier in the week - its highest level since 1996.

Markets have priced in a 25 basis points rate hike in Japan this week, ahead of the Bank of Japan's monetary policy decision at 0730 BST on Friday, with borrowing costs already at their highest level since September 1995, following a 25bp increase in June. The BoJ's expected move would follow the US Federal Reserve's decision to make a similar such move on Wednesday.

Separately, officials told Nikkei that Japan and the US were in talks to build a semiconductor plant in America, as part of Japan's $550bn investment programme under the countries' tariff agreement.

In economic news, the Hong Kong Monetary Authority lifted its base rate by 25 basis points to 4.25%, mirroring the US Fed's latest move. Because the Hong Kong dollar is pegged tightly to the US currency at $7.75 to $7.85 per dollar, local monetary policy tracks the FOMC'ss decisions. It marked the HKMA's first rate hike since July 2023.

Elsewhere, Singapore's exports surged 46.2% yearonyear in August, the strongest growth in nearly four decades, driven by continued global demand for AIrelated electronics.

On the equity front, China's Huawei said it will launch two new Ascend 960 AI chips in 2027, outlining the next stage of its AI infrastructure roadmap at its 2026 Connect Conference. Rotating chairman David Wang said the company was stepping up efforts to expand its AIcomputing business and compete more directly with Nvidia. He confirmed Huawei will introduce two Ascend 960series processors - the 960DT, expected to debut in the first quarter of 2027, and the 960PR, set for commercial rollout in the third quarter. Wang added that the new chips form part of Huawei's broader push to scale its AI capabilities over the coming years.

Reporting by Iain Gilbert at Sharecast.com