Asia’s stock gauge fluctuates as Japan drops, China advances

SYDNEY / TOKYO (May 23): Asia’s benchmark stock index swung between gains and losses as Japanese shares fell as the yen advanced, offsetting gains in Chinese and Taiwanese shares.

The MSCI Asia Pacific Index rose 0.1% to 125.76 as of 10.29am in Hong Kong, swinging from a loss of as much as 0.6%. Japan’s Topix index lost 1% and the yen gained amid clashes between the Group of Seven finance chiefs on whether to intervene in the currency market. Data also showed overseas shipments for Asia’s second-biggest economy fell for a seventh month. Hong Kong’s Hang Seng Index and the Shanghai Composite Index both climbed on low volumes. Taiwan’s Taiex index rallied 2%.

“It’s possible that the G-7 meeting made investors conclude Japan and the US have failed to reach an agreement,” said Kiyoshi Ishigane, chief strategist at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo. “The yen is strengthening, and Japan’s trade balance was bigger than expected.”

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