2014.07.2503:19:49UTC+00Asian stocks fluctuate, steps down from three-year high

Asian stocks were mixed in the opening trade for Friday as the regional benchmark index retreats from a three-year high on good industrial shares but poor energy producers.

The MSCI Asia Pacific Index was little changed, declining by less than 0.1% to 148.27, 10:30 am, Tokyo time.  The gauge is set to gain by 1.1% for the week which would be a tenth week advance in 11 weeks if it pulled through to the end of the day. The regional benchmark index was bolstered by another record breaking close from the S&P 500 as more and more companies report a better-than-expected earnings than those who failed to meet estimates.

Japan’s Nikkei 225 Index and South Korea’s KOSPI Index hiked by 0.94% or 143.96 pips to 15,428.38 and 0.32% or 6.58 pips to 2033.20 respectively. Hong Kong’s Hang Seng Index and Australia’s S&P/ASX 200 are fell by 0.01% or 0.91 pips to 24,140.59 and 0.15% or 8.60 pips to 5579.20 respectively. China’s Shanghai Composite Index and the CNBC 100 gained 0.58% or 12.24 pips to 2117.30 and 0.01% or 0.31 pips to 7,540.05 respectively.

Japan’s Fanuc Corp. and Itochu Corp. led the advance for going beyond estimates in the corporate earnings report. In Sydney, owner of Penfolds, Treasury Wine Estates Ltd., shed 2.2% following the announcement of  an unlikely transaction between Credit Suisse Group AG and KKR & Co.

Head of investment markets research at Perpetual Ltd., Matthew Sherwood commented that despite valuations not being stretched, limitations will still exist regarding the general positive trend in the market. Sherwood tells Bloomberg that a downward draft sweeps the market is likely to “prove short-lived on the back of continued monetary support, support, valuations, and an improving growth environment.”

It was recently reported that the International Monetary Fund pared its global growth forecast once more. This news is said to have cut further gains on the market following the IMF’s recent cut last April due to ongoing political tension in Ukraine that continues until today.