Asian markets traded mixed on Friday, despite Wall Street's positive finish Thursday with record low oil prices weighing resources down and China shares trading in negative territory on news of yet another top executive gone missing.
Oil prices were down another 1%, Brent crude at $39.70, down 0.97%. The low prices continued to put pressure on oil-linked currencies such as the Canadian dollar which fell by around 0.5% and the Norwegian kroner by 0.4. OPEC had announced last week that its crude oil production was at a three year high in November and that it would not put the brakes on future production despite the high levels of U.S .shale output.
Acccording to Mark Matthews, head of research for Asia at private bank Julius Baer, "Most investors are 'laying low' ahead of the all-important FOMC meeting next Wednesday and Thursday.” Policymakers are widely expected to increase interest rates for the first time in nine years when the Federal Reserve meets next week.
AUD Steady
The AUD held on to most of its gains on reports of continued high rates of Australian employment and an unchanged view that current interest rates will hold steady with only a mild easing bias in the near future. The Australian market fell to a one-month low, with the main ASX 200 index slipping 15 points, or 0.29 percent, at 5,023 at market close. Energy, materials, and industry sectors all weighed on the back of lower commodities and base metal prices.
The Chinese markets traded lower in anticipation of another series of economic data due on Saturday, including industrial production, retail sales, and fixed asset investment.