On Friday shares in Australia, Hong Kong and Japan saw modest gains, as they were backed by a record close of the S&P 500 index
in the U.S. and signs of stabilizing bond markets overseas.
Shanghai Composite was down notably, with a loss
of 1.8%, as a rally on Beijing’s stimulus measures from earlier in the
week rapidly cooled, while the region generally traded mixed, says MarketWatch.
As analysts say, pressure comes as investors seem to be selling some of their holdings to have cash for a new round of IPOs. Recently, investing in new IPOs have been a very profitable strategy, as the newly listed stocks skyrocketed in the first days of trading.
Overnight, the S&P 500 marked its seventh record finish this year, while stocks in Germany registered a three-day losing streak.
Most Asian stocks were higher. Tokyo's Nikkei, which has recently been fluctuating, is 0.5% higher on Friday and 1.5% for the week at 19,669.91. The benchmark closed above 20,000 for the first time last month.
Australia’s S&P ASX 200 0.5% higher Friday and 1.6% for the week at 5,725.50.
South Korea’s Kospi was flat Friday after the country’s central bank on Friday kept its benchmark interest rate unchanged for a second straight month as widely expected. Analysts say the Bank of Korea is still gauging the effect of a March policy rate cut to a record low of 1.75%.
Despite moderate gains, Tim Condon, Asia strategist at ING Investment Management, says jitters about further pressure from overseas, including a rise in U.S. interest rates, is on the back of Asian investor’s minds.
“The S&P hit a new high last night, bond yields have come off a bit across the globe - people haven’t just wholesale fled as they did during the taper tantrum, they’ve come back,” he said adding that “it could be just the beginning” of selling in the region.
