Asia stocks: Australia hits new record boosted by banks; Nikkei retreats from peak

Investing.com-- Asian stock markets were mixed on Thursday, with Australia hitting a fresh record high boosted by Westpac earnings, while Japan stocks retreated from peak levels as a stronger yen weighed.

Investors also assessed Australia’s jobs data for July to gauge further rate cut expectations by the Reserve Bank of Australia.

Most Asian markets also took cues from upbeat sentiment on Wall Street around expectations of a Federal Reserve rate cut next month.

Major U.S. stock indices closed in positive territory on Wednesday, with the Nasdaq and S&P 500 hitting fresh record highs.

U.S. stock index futures were largely unchanged in Asia hours on Thursday.

Australia shares hit new record high; jobs data in focus

Australia’s S&P/ASX 200 index jumped 0.8% to 8,996.80 points as of 02:25 GMT, hitting a fresh record high, spurred by this week’s rate cut by the Reserve Bank of Australia.

Corporate earnings also boosted the benchmark index higher. 

Banking giant Westpac Banking Corp (ASX:WBC) on Thursday reported a higher third-quarter profit, sending its shares surging more than 6%, lifting the broader financial stocks higher.

Power producer Origin Energy (ASX:ORG) shares more than 7% to hit a decade high, after reporting better-than-expected annual profit.

Meanwhile, insurer Suncorp (ASX:SUN) shares climbed 4% on strong full-year earnings.

In economic prints, data on Thursday showed that Australia’s job market rebounded in July, largely in line with expectations, while the unemployment rate fell from last month.

A rebound in the labor market could keep the RBA cautious on cutting rates further. It reduced rates by 25 basis points to 3.60% on Tuesday this week.

Asia stocks mixed; Nikkei falls from record highs

Tokyo’s Nikkei 225 dropped 1.3% to 42,642.31 on Thursday, pulling back after Wednesday’s record high of 43,451 and six straight sessions of intraday gains.

Japan’s broader TOPIX index also declined 1% from a record high of over 3,100 points.

The rally was driven by the release of U.S. consumer inflation data, where figures were seen as mild enough to support expectations of a September rate cut.

However, a stronger yen amid Fed rate cut expectations weighed on Japanese stocks on Thursday.

In China, the Shanghai Composite index gained 0.6%, while the Shanghai Shenzhen CSI 300 rose 0.6%. 

Hong Kong’s Hang Seng index edged 0.2% higher.

Other regional markets were subdued. South Korea’s KOSPI index edged 0.2% lower, while Singapore’s Straits Times Index fell 0.4%.

Futures tied to India’s Nifty 50 edged 0.1% lower.