ASIA MARKETS: Asia Stocks Mostly Higher; Tokyo Up On Weaker Yen

By Daniel Inman

A weaker yen helped Japanese stocks lead gains in Asia on Thursday, while losses in mining stocks kept Australia in negative territory.

The ongoing fiscal impasse in the U.S. remained at the forefront, with investors concerned that Washington could pass the deadline to raise the debt ceiling -- a move that could lead to a default.

There were some small signs of progress in the deadlock after news that President Barack Obama would meet House Democrats on Wednesday and House Republicans on Thursday helped Wall Street close in positive territory.

Stocks in Japan and South Korea followed these gains on Thursday, with the Nikkei up 0.7%, Indonesia's JSX rising 0.7% and the Philippines' PSE Composite adding 1%.

Asian markets have proved resilient this week against a backdrop of Wall Street declines, with the region more receptive to good news. Although the region started Tuesday and Wednesday lower, on both days, many markets were able to reverse early losses and end the day with gains.

Thursday was a little more mixed, with Australia, China and South Korea staying in the red.

The Nikkei was helped by weakness in the yen, with the dollar gaining 0.7% against its Japanese counterpart on Wednesday and pushing higher Thursday. The greenback (USDJPY) last changed hands at Yen97.71, compared with Yen97.35 late Wednesday in New York.

Australian stocks failed to join the regional gains, with the market weighed by declines in mining stocks, which fell on the back of overnight falls in commodity prices. Australia's S&P/ASX 200 fell 0.2%, with BHP Billiton (BHP) and Rio Tinto (RIO) down 1% and 0.5%, respectively.

There was some support from Bank of Queensland , which shot up 6.6% after announcing that it had returned to a A$185.8 million profit for the 2013 financial year compared with a A$17.1 million loss in the year before.

The Australian dollar (AUDUSD) got a short boost after a surprise fall in the unemployment rate, with the currency rising as high as 94.72 U.S. cents as improving jobs situation reduced expectations that the Reserve Bank of Australia will cut rates again. It was a short-lived bounce, with the currency sliding to 94.06 U.S. cents, as investors digested that employment had actually grown less than expected.

Chinese stocks dipped ahead of economic data scheduled to be released over the coming days. The Shanghai Composite dropped 0.9% and the Hang Seng Index in Hong Kong was 0.8% lower.

Trade and inflation data out over the weekend and early next week will provide investors a chance to see whether the economic recovery seen in recent months has carried on to September. China's September exports are likely to grow by 5.5% according to a Wall Street Journal survey of 10 economists, suggesting that the country's trade remains healthy.

 
   South Korea's Kospi   fell 0.1%. 
 

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