Asia report: Japan, Australia markets rise on quiet Thursday

(Sharecast News) - Japanese and Australian equities rose on Thursday, diverging from Wall Street's overnight decline after the Federal Reserve maintained its interest rate stance. Most Asia-Pacific markets remained closed for the Lunar New Year holiday.

"Futures for European and US markets rose, paralleling gains in Asian shares as traders looked forward to the ECB's interest rate announcement," said TickMill market strategy partner Patrick Munnelly.

"These movements reflected a slight uptick in Asian stock markets, which pushed a regional index up by approximately 0.1%.

"However, trading activity was subdued in the region due to several major stock exchanges being closed for the Lunar New Year holiday."

Munnelly said forex dealers in Asia were noting that the yen appreciated by as much against the dollar as speculative traders placed bets on the currency, with Japanese shares experiencing gains.

"Nonetheless, initial comments from [Bank of Japan deputy governor Ryozo] Himino seemed to convey a cautious outlook, with the central banker indicating that the BoJ would consider raising rates 'if the outlook is realised'.

Japan, Australia rise on very quiet day for region

Japan's Nikkei 225 climbed 0.25% to 39,513.97, with CyberAgent, DeNA, and Sumitomo Dainippon Pharma leading gains.

The broader Topix index also rose 0.23% to 2,781.93, extending the previous session's momentum.

Australia's S&P/ASX 200 advanced 0.55% to 8,493.70, supported by strength in mining and energy stocks.

Emerald Resources surged 6.43%, while Capstone Copper and Paladin Energy gained 4.33% and 3.77%, respectively.

In contrast, New Zealand's S&P/NZX 50 declined 0.57% to 12,928.38, pressured by losses in Auckland International Airport, KMD Brands, and Fletcher Building, which fell more than 2% each.

In currency markets, the dollar was last down 0.44% on the yen, trading at JPY 154.53, as it gained 0.08% against the Aussie to AUD 1.6061, and advanced 0.19% on the Kiwi, changing hands at NZD 1.7706.

Oil prices remained largely unchanged, with Brent crude inching up 0.07% on ICE to $76.63 per barrel, while the NYMEX quote for West Texas Intermediate was marginally higher at $72.64.

Aussie export prices rise in fourth quarter

In economic news, Australia's export prices rose 3.6% in the fourth quarter of 2024 but remained 8.6% lower year-on-year, according to data from the Australian Bureau of Statistics.

Import prices edged up 0.2% in the quarter but declined 1.9% over the year.

Meanwhile, Bank of Japan deputy governor Ryozo Himino indicated that the central bank would continue raising interest rates if economic and price trends aligned with its forecasts.

Speaking on Thursday, Himino noted that persistently negative real interest rates would be unsustainable unless external shocks or deflationary pressures persisted.

He emphasised the importance of wage and corporate profit growth to drive consumption, investment, and moderate inflation.

The BoJ raised its policy rate to 0.5% from 0.25% last week, anticipating that rising wages would help sustain inflation near the 2% target.

Himino reaffirmed that if the bank's projections hold, further rate adjustments will follow to calibrate monetary support accordingly.

Reporting by Josh White for Sharecast.com.