FX.co ★ Asian Shares Mixed; Shanghai And Hong Kong Gain On Trade Data

Asian markets largely closed lower on Thursday, with exceptions in the Chinese and Hong Kong markets that showed gains due to strong trade data. The caution in the market was due to uncertain outcomes regarding potential Federal rate cuts and ongoing conflict in Gaza's southern city, Rafah.

The US dollar remained strong due to comments from the Federal Reserve. On the other hand, oil and gold prices saw slight increases in Asian trade.

Markets in mainland China and Hong Kong performed especially well following data from the customs office, which revealed China's export numbers exceeded expectations in April, mainly due to a lower comparative basis. Specifically, exports went up by 1.5 percent annually, surpassing the anticipated 1.0 percent and reversing the 7.5 percent decrease recorded in March. Import figures also saw a surge of 8.4 percent annually, exceeding the forecasted 5.4 percent.

As a result, China’s benchmark Shanghai Composite index rose by 0.83 percent to 3,154.32 , and Hong Kong's Hang Seng index increased by 1.22 percent to 18,537.81. Realty stocks saw substantial gains following Hangzhou's decision to withdraw all home purchase curbs.

Meanwhile, Japanese markets experienced a minor downturn, reversing early gains as its currency stabilized after three days of decline due to intervention speculation. Regarding foreign exchange matters, top currency diplomat Masato Kanda affirmed Japan's readiness to manage them around the clock. This was indicative at the Bank of Japan's board members meeting in April, where a large majority exhibited signs of hawkishness.

Data revealed that in March, Japan's real wages decreased for the 24th successive month, strengthening the argument against aggressive rate hikes by policymakers. The Nikkei average ended down 0.34 percent at 38,073.98, while higher gains were seen in the broader Topix index, which rose by 0.26 percent to 2,713.46.

Seoul's stocks witnessed a sharp fall due to persistent uncertainty over potential US rate cuts. The Kospi average dropped 1.20 percent to 2,712.14, in the absence of key US CPI data.

Australia's market also suffered losses after the Commonwealth Bank of Australia's profits for the third quarter came in lower than expected. The bank's shares plummeted by 2.2 percent in response. Simultaneously, the benchmark S&P ASX 200 ended 1.06 percent lower at 7,721.60, and the broader All Ordinaries index fell by 1.02 percent to close at 7,994.20. Across the Tasman, New Zealand's benchmark S&P NZX-50 index slipped 0.31 percent to 11,746.58.

In the US, the market had mixed results overnight. Treasury yields significantly increased following the auction of 10-year notes. The Dow Jones rose slightly by 0.4 percent, securing gains for the sixth successive session and closing above 39,000 points first-time in five weeks. The S&P 500 wrapped up with negligible alterations, and the Nasdaq Composite, primarily tech-based, fell by 0.2 percent.