Asian Markets Mixed As Yen Surges, China Data Disappoints

SYDNEY, Aug 1 (Bernama-dpa-AFX) - Asian stocks showed a mixed performance on Thursday as the US dollar weakened against the yen and a private survey revealed that China's factory activity contracted in July for the first time in nine months.

The dollar index recovered some ground, after having fallen to a near two-week low as Federal Reserve Chair Jerome Powell indicated a possible interest rate cut in September, reported dpa-AFX news.

Gold dipped from a two-week peak while oil extended overnight gains on signs of strong US demand and due to growing Middle East tensions, with Iran reportedly ordering a retaliatory strike on Israel for killing a Hamas leader on its soil.

China's Shanghai Composite index dipped 0.22 per cent to 2,932.39 after the Caixin manufacturing purchasing managers index fell to 49.8 last month from 51.8 in June.

Hong Kong's Hang Seng index slid 0.23 per cent  to 17,304.96.

Japanese markets plummeted as the yen's further appreciation to the 148 level against the US dollar clouded the outlook for the country's exporters. The Nikkei average briefly plunged over 3 per cent  before ending 2.49 per cent lower at 38,126.33, dragged down by auto, electronic and real estate stocks. The broader Topix index settled 3.24 per cent  lower at 2,703.69.

The yen hit a four-month high versus the dollar, a day after the Bank of Japan chief signalled the possibility of a further interest rate hike.

Seoul stocks eked out modest gains, with the Kospi average rising 0.25 per cent  to 2,777.68 - extending gains for a second day running led by shipbuilders and battery shares. 

Australian markets ended at a record high for a second consecutive session, with miners and real estate stocks leading the surge ahead of next week's RBA's rate decision. The benchmark S&P/ASX 200 rose 0.28 per cent to 8,114.70 while the broader All Ordinaries index edged up 0.28 per cent  to 8,343.80.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index gained 0.67 per cent to close at 12,487.94, crawling towards a 30-month high.

--BERNAMA-dpa-AFX