Asian Markets Mixed, Chinese Indexes Head Lower Once Again

Talking Points:

• It was a mixed, quiet session for Asia Pacific equities
• Chinese indexes slipped once again, but less heavily
• US oil prices hit new, two-year highs

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Asian markets were mixed Friday, missing the US lead with markets there closed for Thanksgiving the day before.

The Nikkei 225 closed up 0.1%, while Australia’s ASX 200 was down, but only just, falling 0.06%. In Seoul the Kospi added 0.1%.

Chinese markets were in uncomfortable focus following Thursday’s blue-chip selloff. A combination of more stringent rules for micro-lenders and higher bond prices were reportedly behind those declines. Friday saw more falls, but they weren’t as steep. The Shanghai Composite was down 0.2% while. Hong Kong’s Hang Seng was up by 0.4%. at 0600GMT. The CSI 300 index which slid so far on Thursday was down again, shedding 0.3%.

As you might expect there wasn’t a lot of action in thinly traded foreign exchange markets. The US Dollar remains under pressure thanks to this week’s Federal Reserve inflation caution, but it wasn’t hit very hard in Asian hours. Indeed USD/JPY inched back upward through the session, reacting hardly at all to news that Japan’s manufacturing sector had enjoyed a punchy November.

Gold prices were essentially flat though although US crude oil prices made new, two-year highs. The closure of the US/Canadian Keystone pipeline following a spill earlier this week was reportedly once again behind its gains.

Friday’s European and US data slate is thin. The day after Thanksgiving is not a Federal holiday but it is a widely celebrated State holiday which will make for very sparse US market action. Germany’s IFO survey is coming up, as is the British Bankers’ Association’s look at UK mortgage lending. Next up after that will be official Mexican growth data with US Purchasing Managers Index releases bringing up the rear.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX