Asia markets pare losses as Bank of Japan leaves monetary policy unchanged

This is CNBC's live blog covering Asia-Pacific markets.

Kazuo Ueda, governor of the Bank of Japan (BOJ).
Bloomberg | Bloomberg | Getty Images

Asia-Pacific markets are mixed as the Bank of Japan left its monetary policy unchanged after its latest meeting concluded on Friday, with some markets paring losses earlier in the day.

The central bank kept rates at -0.1%, and capped the 10-year Japanese government bond yield around zero.

BOJ Governor Kazuo Ueda has maintained that an ultra-easy monetary policy is needed until Japan sees a sustained inflation at 2%. Japan's headline inflation figures have remained above this target since April 2022, with the latest reading coming in at 3.2% for August.

Japan's Nikkei 225 fell 0.52% to close at its lowest level this month at 32,402.41, while the Topix slid 0.3% to 2,376.27, marking three straight days of losses.

Hong Kong's Hang Seng index gained 2.12% in its final hour, reversing losses and leading gains in Asia, while mainland Chinese markets also advanced, with the CSI 300 closing 1.81% up at 3,738.93 and rebounding off its 10-month low.

In Australia, the S&P/ASX 200 gained 0.05%, also reversing losses earlier in the day and ending at 7,068.8.

South Korea's Kospi slid 0.27% to close at 2,508.13, while the Kosdaq slipped 0.39% for its sixth straight day and finished at 857.35, its lowest level since May 31.

On Thursday in the U.S., all three major indexes notched a third straight day of losses as Treasury yields popped to multiyear highs and investors grew worried that lawmakers would be unable to prevent a shutdown.

The Nasdaq Composite led losses and retreated 1.82%, while the Dow Jones Industrial Average dropped 1.08%. The S&P 500 slid 1.64%.

— CNBC's Pia Singh and Alex Harring contributed to this report.

Sega Sammy CEO says he's 'quite positive' on AI in game development

Sega Sammy CEO discusses the potential of AI in gaming
Sega Sammy CEO discusses the potential of AI in gaming

Haruki Satomi, president and group CEO of Sega Sammy Holdings, says he's "quite positive" about artificial intelligence as it gives game developers more time to focus on creativity.

He said his company has already been using a lot of AI applications in the game development process.

In the future, Satomi said that Sega Sammy plans to use more AI technology to enhance the gaming experience for users.

— Quek Jie Ann

Bank of Japan makes no change to rates, but notes 'moderate recovery' in economy

Japan's central bank made no changes to its benchmark lending rate and yield curve control policy following its latest monetary policy meeting.

The central bank kept rates at -0.1%, and capped the 10-year Japanese government bond yield around zero.

At the last policy meeting in July, the Bank of Japan loosened its yield curve control to allow longer-term rates to move more in tandem with rising inflation. It was Ueda's first policy change since assuming office in April.

Read the full story here.

— Lim Hui Jie, Clement Tan

Japan private sector activity expands at slowest pace since Feburary

Japan's private sector activity expanded at its slowest pace since February, flash estimates from au Jibun bank show.

The flash composite purchasing managers index for Japan in September stood at 51.8, down from August's figure of 52.6.

Manufacturing PMI showed a faster contraction, at 48.6 compared with 48.9 in August while services PMI came in at 53.3 for September, a softer expansion than the 54.3 in the month before.

A PMI reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction.

— Lim Hui Jie

Japan August inflation rate at 3.2%, above BOJ target for 17th straight month

Japan's headline inflation rate came in at 3.2% for August, slightly slower than the 3.3% seen in July and the 17th straight month that inflation has went above the Bank of Japan's 2% target.

The core inflation rate, which strips out prices of fresh food stood at 3.1%, unchanged from the July figure and slightly higher than the 3% expected by economists polled by Reuters.

The so-called "core-core" inflation rate, which excludes prices of both fresh food and energy and is used by the BOJ in its monetary policy considerations, was at 4.3%, unchanged from July.

— Lim Hui Jie

CNBC Pro: Morgan Stanley says these 6 global stocks will benefit from a 'monumental shift' in the chip industry

A "monumental shift" is underway in the semiconductor industry — and a raft of stocks are set to benefit, according to analysts at Morgan Stanley.

In a Sept. 18 note, they highlighted a transition to "3D 'gate-all-around' architecture," which they said presents a more than $10 billion "cumulative" opportunity for semi-cap original equipment manufacturers by 2030.

The bank named the stocks it likes.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Hong Kong inflation holds steady at 1.8% in August

Hong Kong's inflation rate stood at 1.8% in August, unchanged from the previous month and slightly lower than the 2% expected by economists polled by Reuters.

The city's statistics department said the largest year-on-year increases in prices were recorded for alcoholic drinks and tobacco, clothing and footwear, as well as prices of electricity, gas and water.

On the other hand, year-on-year decreases were recorded for prices of durable goods and basic food.

Hong Kong's inflation rate of 1.8% is sharply higher than the mainland's rate of 0.1% recorded in August.

— Lim Hui Jie

CNBC Pro: Looking for value stocks? Citi lists over 10 European names — for risk-takers and the cautious

European value stocks are doing better than growth stocks right now, according to Citi analysts.

"We believe European Value still has more to run with its undemanding valuations and upside to a China recovery but investors should remain cautious and consider Quality Value. For those investors [who are] less risk averse, consider Risky Value," the analysts wrote.

They screened for stocks in the two categories.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

House Republican leaders send chamber into recess, bolstering shutdown fears

Investors followed news that House Republican leaders sent the chamber into recess on Thursday, raising concerns that federal lawmakers won't pass a bill to avert a government shutdown. Market participants are concerned that a shutdown would hurt fourth-quarter GDP.

— Alex Harring, Christina Wilkie

All 11 S&P 500 sectors trade down

All 11 S&P 500 sectors traded lower on Thursday, helping to push the broad index down about 1%.

Consumer discretionary led the sectors lower with a loss of more than 2%, dragged on by 4% drops in PulteGroup and D.R. Horton. Real estate was the second worst performing sector at 1.8% down, followed by materials with a 1.5% loss.

Utilities stocks were able to pare losses the most, with the index down just 0.2%.

— Alex Harring

Dollar index climbs, makes 'golden cross'

The U.S. dollar is rising along with Treasury yields after Wednesday's Federal Reserve policy statement.

The dollar index hit its highest level since March 9 on Thursday morning, and its 50-day moving average surpassed the 200-day moving average — a so-called "golden cross."

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The dollar index has gained since the Federal Reserve's policy statement on Wednesday afternoon.

Read more about this technical indicator and what it means for the global economy on CNBC Pro.

— Jesse Pound

Treasury yields extend multi-year highs

U.S. Treasury yields climbed on Thursday as investors digested the Federal Reserve's interest rate decision and forward guidance.

At 3:40 a.m. ET, the yield on the 10-year Treasury was up by around seven basis points to 4.4172% as it extended its 16-year high. It started trading at levels last seen in 2007 earlier this week. The 2-year Treasury was more than three basis points higher to 5.1588%, hovering around levels last reached in 2006.


— Sophie Kiderlin