(Sharecast News) - Asia-Pacific markets mostly fell on Thursday, diverging from Wall Street's positive momentum as investors reassessed the implications of a temporary pause in US-China trade tensions.
Despite the S&P 500 rising for a third consecutive day earlier in the week, sentiment in the region remained fragile, with US stock futures slipping in overnight trading.
"Asian markets fell on Thursday, experiencing their first decline in five sessions, as the gains on Wall Street spurred by US-China trade talks appeared to be losing momentum," said TickMill market strategy partner Patrick Munnelly.
"Both Japanese and Chinese stock markets, alongside US futures, saw decreases, reflecting a cautious mood following a week marked by a robust rebound in risk assets driven by progress in trade discussions and economic stability.
"There are ongoing worries that stock prices may have risen too high, leaving them susceptible to sudden changes."
Munnelly also noted that European stock futures saw minor dips, but despite that, said the developing US-China trade agreement, a deal in the UK, and major transactions in the Gulf were reassuring investors.
"The S&P 500 recorded a slight increase of 0.1% overnight, while the Nasdaq 100 climbed 0.5%, boosted by Nvidia's strong performance that recovered its losses for 2025.
"The dollar index fell on Thursday, undoing a rally from Wednesday, as the US dollar weakened against most of the G10 currencies.
"The yen appreciated to about 146 per dollar, and the Australian dollar strengthened following better-than-expected employment figures."
Asia markets finish lower, Australasia in the green
In Japan, the Nikkei 225 declined 0.98% to 37,755.51, while the Topix lost 0.88% to close at 2,738.96.
Losses were led by Rakuten, which plunged 8.81%, alongside declines of 6.00% for Sumitomo Dainippon Pharma and 5.51% for Eisai.
China's major indices also ended lower - the Shanghai Composite fell 0.68% to 3,380.82, while the Shenzhen Component slumped 1.62% to 10,186.45.
Among the steepest decliners were TianJin Global Magnetic Card Co, down 10.00%, Shanghai Golden Bridge InfoTech, down 7.78%, and Flying Technology, which dropped 7.58%.
Hong Kong's Hang Seng Index dropped 0.79% to 23,453.16, with heavy losses from JD.com, down 4.38%, Longfor Properties, off 3.58%, and Semiconductor Manufacturing International Corporation, which declined 3.40%.
South Korea's Kospi 100 retreated 0.78% to 2,613.46.
Hanjinkal led declines in Seoul with a 17.00% plunge, while SKC lost 4.54% and Cosmoam&T fell 3.81%.
Australia's S&P/ASX 200 gained 0.22% to 8,297.50, bolstered by a strong performance from Graincorp, which surged 8.81%.
Insurance Australia Group rose 5.70%, and Xero advanced 4.71%.
New Zealand's S&P/NZX 50 outperformed the region, rising 0.79% to 12,880.82.
Heartland Group Holdings jumped 6.33%, Fisher & Paykel Healthcare gained 3.67%, and Sanford rose 3.43%.
In currency markets, the dollar was last down 0.62% on the yen, trading at JPY 145.84, while it edged up 0.1% against the Aussie to AUD 1.5573, and gained 0.09% on the Kiwi, changing hands at NZD 1.6967.
Oil prices saw steep declines, with Brent crude futures last down 3.62% on ICE at $63.70 per barrel, and the NYMEX quote for West Texas Intermediate falling 3.85% to $60.72.
PBoC cuts reserve ratio requirement, Australia adds more jobs than expected
In economic news, China's central bank implemented a 50 basis point cut to the reserve requirement ratio, a move that freed up CNY 1trn yuan (104.43bn) in liquidity for the banking system.
The adjustment, confirmed by state media Xinhua, was part of a broader set of stimulus measures unveiled to support economic growth in the face of trade uncertainty.
Alongside the reserve cut, the People's Bank of China also introduced interest rate reductions aimed at boosting credit and investment activity.
Down under, Australia's latest labour data pointed to continued strength in the job market.
The country added 89,000 jobs in April, far surpassing expectations of a 20,000 gain and well above March's increase of 32,200.
Canberra said the unemployment rate held steady at 4.1%, matching forecasts.
Reporting by Josh White for Sharecast.com.
48.74 (0.57%)
34.49
0.00