Asian stocks trade lower as dollar surges, Hong Kong’s stock market shut as typhoon Haima nears

NEW YORK, U.S. - Asian shares declined on Friday as a strong dollar weighed on stock markets, with the Nikkei reversing gains late in the session after news of an earthquake striking Western Japan.

On Friday, the dollar touched a record high against the freely-traded yuan in the offshore market, rising 0.3 percent. The greenback was 0.2 percent stronger against the onshore yuan, after earlier hitting a new six-year high.

The WSJ Dollar Index, which tracks the greenback against 16 other currencies, was up 0.2 percent at 88.50 in last-minute Asian trade.

Analysts said the dollar’s strength came from the broad weakness in the euro and expectations of an interest-rate hike by the U.S. Federal Reserve in December. 

The Nikkei Stock Average closed down 0.3 percent, paring the 0.6 percent gains made earlier in the day, even as the extent of damage caused by the magnitude 6.2 earthquake remained unclear.

The index, however, ended the week advancing close to 2 percent, riding on robust corporate earnings and a weak yen.

Korea’s Kospi fell 0.4 percent and Singapore’s Straits Times Index was down by 0.4 percent.

A bearish yuan in China stoked fears of a renewed cash withdrawal syndrome, similar to what transpired after Beijing depreciated the currency in August, 2015. 

The country's housing market, though, maintained its successful run, with home prices rising in 63 of 70 cities in September from the previous month. Data showed that average new home prices rose 1.8 percent in September, as against a 1.3 percent gain in August.

The benchmark Shanghai Composite Index recovered in late trade to settle up 0.2 percent, while the Shenzhen Composite Index ended down 0.4 percent. 

Hong Kong’s stock market was closed on Friday as the city was shut down due to the possible impact of typhoon Haima. 

Authorities have issued a T8 tropical cyclone warning, implying most businesses and schools have to be closed. 

India's BSE Sensex ended the day at 28077.18 points, down 52.66 points or 0.2 percent, while the 50-stock Nifty 50 closed at 8693.05 points, down 0.1 percent.