CANBERA (dpa-AFX) - Most Asian stocks fell on Friday and emerging markets currencies skidded against the dollar, as soaring U.S. bond yields on expectations of higher inflation and interest rates in the U.S. stoked worries about capital outflows from the region.
The dollar continued to strengthen after President-elect Donald Trump promised tax reform and large fiscal spending to stimulate the world's largest economy.
China's Shanghai Composite index rose 24.76 points or 0.78 percent to 3,196.04, a 10-month high, after news that the long-awaited Shenzhen-Hong Kong Stock Connect will be officially launched on Nov.21. Hong Kong's Hang Seng index is down 308 points or 1.35 percent at 22,531.
China's yuan weakened for a second straight day to hit a fresh six-year low against the dollar, tracking a broad rally in the greenback as investors braced for further uncertainty over coming weeks.
Japanese shares ended a tad firmer as the dollar continued to rise against the yen on expectations of expansionary fiscal policy under Trump. The Nikkei average inched up 30.37 points or 0.18 percent to 17,374.79, taking its gains for the week to 2.8 percent. The broader Topix index closed 0.14 percent higher at 1,378.28.
Financials led the gainers amid the rise in U.S. Treasury yields. Mitsubishi UFJ Financial, Japan's largest bank, soared as much as 9 percent, Mizuho Financial rallied 3.7 percent and Sumitomo Mitsui Financial climbed 4.1 percent.
Mitsubishi Materials Corp shares soared 7 percent after London copper prices jumped 4 percent to hit their highest level in nearly 16 months on Thursday. Pioneer Corp slumped 8.4 percent after the car electronics maker reported a net loss for the second quarter.
Australian shares eked out modest gains, as stronger commodity prices lifted miners and financials also gained ground on expectations of higher interest rates globally.
The benchmark S&P/ASX 200 moved in a tight range before seeing a late surge to end the session 41.90 points or 0.79 percent higher at 5,370.70. The broader All Ordinaries index climbed 37.70 points or 0.70 percent to finish at 5,446.60.
BHP Billiton, Rio Tinto and Fortescue Metals Group rallied 2-4 percent after iron ore prices soared 4.4 percent to a two-year high on Thursday. Santos shares soared 6.4 percent after Chinese private equity firm Hony Capital increased its stake in the oil & gas company.
The big four banks rose between 2.6 percent and 4.2 percent, while investment bank Macquarie Group advanced 2.1 percent and insurer Suncorp Group added 1.5 percent. Gold miners Newcrest, Northern Star and Regis Resources fell over 7 percent each as gold remained on track for its first weekly drop in four.
Seoul stocks fell, the local currency hit a four-month low and the South Korean 10-year bond yields hit their highest level in eight months, as the global debt sell-off extended into Friday on expectations that Trump's low tax/high-spending policies might fuel inflation.
Also, the Bank of Korea today held its key rate at a record low, as widely anticipated, amid uncertainty about the direction of the new U.S. government's economic policies. The benchmark Kospi dropped 18.17 points or 0.91 percent to 1,984.43.
New Zealand shares fell as Trump's victory introduced a further high degree of uncertainty surrounding U.S. foreign and trade policies. The benchmark S&P/NZX50 dropped 35.94 points or 0.53 percent to 6,697.78, with Spark New Zealand, Auckland International Airport and Orion Health Group losing 3-7 percent. Infratil lost 2.2 percent after reporting a 7.1 percent fall in first-half earnings.
Data from Business NZ showed today that New Zealand's manufacturing sector continued to expand in October, albeit at a slower pace, with a Performance of Manufacturing Index score of 55.2, down sharply from 57.7 in the previous month.
Malaysia's KLSE Composite index is down about 1 percent as investors digest mixed readings on GDP and industrial output growth. India's Sensex is tumbling 1.4 percent amid fears over possible capital outflows.
Indonesia's Jakarta Composite index is tumbling 3.4 percent and Singapore's Straits Times index is declining 0.4 percent while the Taiwan Weighted lost 2.1 percent.
Overnight, U.S. stocks ended mixed as gains among banks and other financial companies on optimism about reduced regulation and speculation over policy changes under the Trump administration offset a slide in the technology sector.
The Dow rose 1.2 percent to a record high and the S&P 500 inched up 0.2 percent to extend gains from the previous session, while the tech-heavy Nasdaq slid 0.8 percent.
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