Asia report: Shares broadly higher as yen remains in focus

(Sharecast News) - Asian markets finished mostly higher on Thursday, with moves dominated by another volatile session for the yen as traders weighed the prospect of fresh intervention from Tokyo. Japan's Nikkei 225 closed at 68,308.59, up 1.16%, and the Topix ended 0.89% higher, supported by strength in tech and exporters. In Australia, the S&P/ASX 200 fell 0.23% to 9,188.50, while the All Ordinaries eased 0.25% to 9,381.40.

Hong Kong's Hang Seng dipped 0.17% to 25,396.51, mainland China's Shanghai Composite lost 0.50% to 3,926.96. South Korea's Kospi outperformed, jumping 3.56% to 6,813.34, with large‑cap tech names driving the advance.

The yen remained the central focus, trading around ¥159.3 to the dollar, still uncomfortably close to the ¥160 level that authorities have repeatedly flagged as a trigger for action.

The currency briefly firmed after softer US inflation data eased pressure on the Federal Reserve to hike again in September, but wide rate differentials continued to favour dollar strength. Analysts said the yen's weakness remained "structural", with carry trades still attractive despite recent coordinated intervention by Japan and the US.

The Bank of Japan's latest meeting summary added to the tension, showing policymakers debated whether the pace of tightening should accelerate amid persistent inflation pressures. Producer prices rose 7.2% in July, underscoring the impact of the weak yen on import costs.

Across the region, sentiment was broadly positive. South Korea's Kospi edged higher, supported by large‑cap tech names, while Hong Kong traded mixed as investors balanced optimism over US inflation with caution around China's patchy recovery. Mainland Chinese markets saw selective gains in industrials and hardware stocks.

Reporting by Frank Prenesti for Sharecast.com