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Asia stocks trading mixed, Aussie dollar weakens

Asian equities were mixed, with stocks rising in Japan, Hong Kong and Australia and falling in China and South Korea. The Australian dollar declined after another disappointing set of economic data.

In Japan, the Nikkei 225 Stock Average recovered most of its worst slide in nine months after US stocks steadied. The MSCI Asia Pacific Index was up after falling for eight consecutive days to Wednesday.

The Australian dollar dropped to the lowest since June after October trade data missed estimates. Weaker-than-expected third-quarter GDP earlier this week reinforced views that the central bank won’t adjust monetary policy any time soon, sending the Aussie lower.

"Japanese stocks will probably regain their calm as the currency market hasn’t fallen into a typical risk-off vicious circle after the selloff in Asian stocks yesterday," said Juichi Wako, a senior strategist at Nomura Securities in Tokyo. "Shares are looking cheaper."

Global markets have succumbed to a bout of profit taking this week with eight days of losses for Asian equities culminating on Wednesday in the biggest slide since last December for the region’s stocks index.

Technology stocks, this year’s biggest winners, have posted the largest declines along with emerging-market shares, also standout winners in 2017.

Elsewhere, sterling weakened as efforts to rescue Brexit talks appeared to stumble. The looniest fell as the Bank of Canada kept borrowing costs on hold at its last interest-rate decision of 2017 and reiterated it will be "cautious" with future moves.

Here are some of the key events facing markets in the coming days:

The US faces a partial government shutdown after money runs out on December 8 if Congress can’t agree on a spending bill by then. US employers probably hired at a robust pace in November as the unemployment rate held at an almost 17-year low.

The Labour Department’s jobs report on Friday may also show a bump up in average hourly earnings.

These are the main moves in markets:

Stocks

The Topix index was up 1.2% at the close in Tokyo and the Nikkei 225 Stock Average rose 1.5%. The Nikkei dropped 2% on Thursday. Australia’s S&P/ASX 200 Index gained 0.5%.

South Korea’s Kospi index was 0.3% lower. Hong Kong’s Hang Seng Index was up 0.4%, and the Shanghai Composite Index was down 0.5%. Futures on the S&P 500 rose 0.2%. The underlying measure closed little changed.

The MSCI Asia Pacific Index advanced 0.5%.

Currencies

The Bloomberg Dollar Spot Index rose 0.1%. The Australian dollar fell 0.2% to 75.46 US cents. The yen fell 0.2% to 112.49 per dollar. The euro traded at $1.1790. The pound added to losses, falling 0.2% to $1.3366.

Bonds

The yield on 10-year Treasuries held at 2.34%. Australia’s 10-year yield rose one basis point to 2.51%.

Commodities

West Texas Intermediate crude was up 0.2% at $56.07 a barrel after falling 2.9% on Wednesday. Gold was at $1 259.77 an ounce.

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