TOKYO (Reuters) – Asian stocks held below their 10-year high on Friday, while those in mainland China fell to three-month lows after big losses the previous day on worries about new government steps to curb financial risks and a continuous defeat in the Chinese bond market.
Otherwise, markets lacked Wall signals Street, which closed for the Thanksgiving holiday in the United States on Thursday, and was scheduled to hold a shortened trading session on Friday.
MSCI's broader index of Asia and the Pacific shares outside Japan was almost flat, as Hong Kong shares withstood the softness of the mainland stock to gain 0.6 percent.
The MSCI index was barely 0.5 percent below its 10-year high at the beginning of this week and is on track to post a weekly gain of 1.4 percent.
Japan's Nikkei fell 0.3 percent after a market holiday on Thursday, while US stock futures fell on Thursday. UU They registered few changes after the opening of operations on Thursday.
"Many markets have been reaching new highs, so there should be some profit taking and I would not worry too much, but even so, in the very short term, we might be in a phase where patience is needed," said Hirokazu. Kabeya, global strategist head of Daiwa Securities.
Although strong global economic growth and strong corporate earnings have underpinned equities in Asia and many other parts of the world, a decline in mainland stocks caught the attention of some investors.
The CSI300 index fell to 0.9 percent, to a three-month low in a hectic trade after falling 3.0 percent, its highest in nearly a year and a half, on Thursday, as a wave of sales in the national market. The bonds that have been in effect since last month affected investor sentiment.
Investors were also reacting to new policies aimed at curbing microcredit and adjusting the regulation of asset management companies.
The initial Chinext Index reached its lowest level since mid-August and remained below 0.3 percent, above the potential increase in the sale of small shares in the coming months by institutional investors after its Initial public offering (initial public offering)) ends the blocking period.
"The market is affected by concerns about supply-demand balance, but there are no major concerns in terms of fundamentals," said Naoki Tashiro, president of TS China Research.
Earlier this month, Chinese stocks had risen nearly 15 percent from their lows reached in May, and analysts said some investors were selling to secure profits.
"We have seen a bullfight in blue-chips this year, but no matter how good a company is, its price can not go up forever," said Wu Kan, head of equity trading at Shanshan Finance.
In the foreign exchange market, the US dollar. UU He remained under pressure after the minutes of the last policy meeting of the US Federal Reserve. UU They will highlight the concern among some of the council members about persistently low inflation.
"The Federal Reserve funds futures market has lowered expectations for future rate hikes after minutes, a key focus in the future would be Powell's audience in the Senate on Tuesday," he said. Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
The euro is trading at $ 1.1846, close to its one-month high of $ 1.1862 set on November 15 and aimed at marking its third consecutive week of gains despite the failure of the coalition talks in Germany earlier this year. week.
The leader of the country's Social Democrats is under increasing pressure to withdraw his opposition to a new "grand coalition" with the conservatives of Chancellor Angela Merkel, and high-level politicians argue that the party had a duty to promote the stability.
The dollar fell to a two-month low of 111.07 yen on Thursday and was last traded at 111.33 yen.
A weaker dollar saw the pound sterling remain close to a maximum of six weeks against the dollar before the visit of British Prime Minister Theresa May to Brussels later in the day to talk about Brexit.
The pound was last traded at $ 1.3295, slightly less than Thursday's six-week high of $ 1.3337.
U.S. Crude futures reached a two-year high at the closing of the Keystone pipeline, a major oil pipeline from Canada to the United States.
U.S. West Texas Intermediate (WTI) futures settled at $ 58.37 per barrel at 0206 GMT, up 35 cents, or 0.6 percent since its last deal. They reached a high of $ 58.58 per barrel on early Friday, the highest level since July 1, 2015.
Futures of the Brent international benchmark remained firm at $ 63.36, down 0.3 percent on the day.
In a signal of an adjustment market, both raw reference points are in backwardation, where the spot prices are higher than those of future delivery, which makes it unattractive for merchants to store oil for later sale.
Report of Hideyuki Sano; Simon Cameron-Moore edition