Shares in the Asia-Pacific traded mixed on Thursday after Wednesday's negative session, with stocks in Shenzhen and Shanghai falling sharply.
Mainland China's Shenzhen Component fell 2.105% to 11,526.96, dragged down by energy stocks. The Shanghai Composite shed 1.16% to 3,199.92, while the Hang Seng index in Hong Kong added 0.44% to 18930.38.
The Nikkei 225 in Japan rose 0.21% to 27,875.91 and the Topix index was 0.15% higher at 1,950.43. The Japanese yen was last trading at 143.69 against the dollar after a reported "rate check" by the Bank of Japan.
In China, the central bank kept its one-year medium-term lending facility (MLF) unchanged at 2.75%, as expected. Australia's unemployment rate for August came in at 3.5%, slightly higher than July.
Chinese yuan could weaken past 7 against the dollar by year-end, says Credit Suisse
The Chinese yuan could weaken to 7.05 against the U.S. dollar by year-end, said Max Lin, Asia FX and rates strategist at Credit Suisse.
The 7 level is "not really a red line" for the country's central bank anymore, he said, pointing out that the currency crossed that level in 2019, and again in 2020 due to the Covid-19 pandemic.
"I think the real red line for them is 7.15," Lin said. "Because at that point, that's when you start getting multi-decade lows."
The yuan now stands at 6.9806 against the greenback.
— Charmaine Jacob
CATL, BYD dragging down the Shenzhen Component index
Shenzhen-listed shares of the world's largest battery maker, Contemporary Amperex Technology (CATL), slipped 3.86% in the morning session, dragging down the broader index.
BYD's shares in Shenzhen also dropped 3.3%.
— Abigail Ng
Oil prices edge higher on potentially renewed China demand
Oil prices inched higher on Thursday on the potential of renewed demand from China after Chengdu announced to ease lockdown measures.
Traders are eyeing potential disruptions to crude and product deliveries as U.S. railroad unions threaten to go on a strike ahead of a Friday deadline.
— Lee Ying Shan
Japan reports record trade deficit, economist says weak yen helping exports
Japan reported a record trade deficit in August – exports grew 22.1% and imports soared 49.9% this month compared with a year ago, according to official data.
The trade deficit was 2.82 trillion yen ($19.6 billion), the largest on record according to Refinitiv Eikon.
The weaker yen has helped Japan's exports, but the cost of imports "are through the roof," Martin Schulz, chief policy economist at Fujitsu said on CNBC's "Squawk Box Asia."
Real economies are slowing "almost everywhere," he added, and that will affect Japan's exporters as well.
— Abigail Ng
CNBC Pro: Want higher returns? Kevin O'Leary says put your money in 'harm's way' — and shares his stock picks
Billionaire investor Kevin O'Leary believes market volatility is back, and thinks investors will have to take on some risks to get higher returns.
"If you want to get a 6% to 8% return, you're going to have to put some money in harm's way," he told CNBC "Street Signs Asia" on Wednesday.
He names the stocks and sectors he likes to navigate the current volatility.
Pro subscribers can read more here.
— Zavier Ong
China holds key rate, state media reports banks cut deposit rates
The People's Bank of China kept the rate for one-year medium-term lending facility loans (MLF) unchanged at 2.75%, while partially rolling over some maturing loans.
That was in line with analysts' expectations, according to a Reuters poll.
Separately, Chinese state media reported that some banks will be cutting deposit rates, citing sources.
— Abigail Ng
Australia adds 33,500 jobs in August
Australia added 33,500 jobs in the month of August, a 0.2% increase from July in seasonally adjusted terms. Net employment declined in July.
The nation's unemployment rate rose to 3.5%, with the youth unemployment rate at 8.4% for the month.
The market participation rate is at 66.6%, marginally higher than the previous month's 66.4%.
U.S. 2-year Treasury yields hits 3.8% again
Short-term bond yields, which are most sensitive to Fed policy, soared following the U.S. inflation report on Tuesday.
Yields move inversely to prices, and a basis point is equal to 0.01%.
New Zealand's growth recovery driven by transport, data shows
Gross domestic product in New Zealand rebounded in the June 2022 quarter, growing 1.7% after shrinking 0.2% in the previous quarter, official data showed.
Transport, postal, and warehousing jumped 19.7%, driven by air transport and transport support services, while arts, recreation and other services grew 9%.
New Zealand eased Covid restrictions earlier this year, including loosening entry requirements for tourists.
— Abigail Ng
CNBC Pro: Morgan Stanley says the S&P 500 is set for a comeback by year-end. These are its top stock picks
U.S. markets had a meltdown on Tuesday — the worst since June 2020 — following yet another hot inflation report. But that may not last for long, according to Andrew Slimmon of Morgan Stanley Investment Management, who says the S&P 500 could enjoy upside by year-end.
He predicts the level that the S&P 500 will rise to by the year end, and also picks stocks to buy into the "fear."
— Weizhen Tan