HONG KONG - Share prices across the Asia-Pacific region closed mixed, with trade generally sidelined ahead of the release of US jobs data tonight and interest rate meetings next week, dealers said.
Tokyo shares closed little changed as investors turned cautious ahead of theJuly jobs data, which is expected to provide a further key clue on the Fed's rate intentions at its policy meeting next week.
Analysts are divided over whether or not the Federal Reserve will lift its target funds rate for the 18th straight time when it meets next Tuesday. Some believe recent data showing a softening trend in the US economy should be enough to encourage the Fed to pause while others believe inflation remains firm enough to prompt another increase.
The Nikkei 225 Stock Average closed up 28.81 points or 0.2 pct at 15,499.18. For the week, the index rose 1.0 pct.
The TOPIX index of all first-section issues rose 2.17 points or 0.1 pct to 1,571.70. For the week, the index gained 0.8 pct.
Hideo Mizutani, a chief strategist at Sieg Securities, said the market mood is generally upbeat after some positive June quarter results, but at the same time players are wary of driving the market up ahead of tonight's US data.
"Investors could not be aggressive today as they may be caught out if the Fed hikes its rates again next week," he said, adding he believes the Fed is set to pause as it recently signalled concern about emerging softness in the US economy even as it remains vigilant on inflation.
"I believe that the Fed will pause its cycle of rate hikes, so as not to have a harmful effect on the economy," he said.
Australian shares finished lower after the Reserve Bank of Australia's quarterly statement on monetary policy raised inflation fears, dealers said.
The RBA's upward revision to underlying inflation, now expecting core inflation to remain around 3.0 pct over the next two years from 2.75 pct previously, raised expectations the central bank will again raise rates by year end.
Investors sold interest rate-sensitive banking stocks following the RBA statement, dealers said, and resource and energy stocks also weighed on the market after key metal and oil prices fell overnight.
The S&P/ASX 200 shed 41.4 points or 0.83 pct to close at 4,956.1.
Over the trading week, the key index slipped 2.2 points or 0.04 pct.
Hong Kong shares were weaker in afternoon trade, with dealers saying investors were awaiting the release of data and interest rate signals from the US.
At 3.29 pm the Hang Seng index was down 117.56 points or 0.69 pct at 16,930.86.
In China, A-shares in Shanghai and Shenzhen closed sharply lower on increasing liquidity concerns with metal stocks and automakers under heavy selling pressure, dealers said.
The Shanghai A-share Index tumbled 32.60 points or 1.94 pct to 1,650.23 and the Shenzhen A-share Index was down 11.89 points or 2.87 pct at 402.36.
Seoul shares ended sharply higher, rising above a key resistance level of 1,300 points, as strong program buying offset caution ahead of the US jobs data and interest rate-setting meetings in South Korea and the US next week, dealers said.
The market started firm, taking its cue from gains on Wall Street, and closed near its high for the day as program buying picked up in late trade.
The KOSPI index closed up 12.46 points or 0.96 pct at 1,304.51, after moving between 1,305.80 and 1,296.50, ending the week with a gain of 7.44 points.
The closing level was the highest since June 2 when the index hit 1,309.04.