Japanese stocks snapped a three-day rally, but the rest of Asia gained after the Fed

It was always going to be an interesting day’s trade in Asia today after US stocks reversed a brief Fed-induced rally on Thursday.

The risk across the regions markets was going to be the reaction of traders in Japan after the past three days of rallies and the Yen buying in forex markets this morning.

That’s seen USDJPY back under 120 at 119.71 and dragged the big exports lower on the day. Nippon Steel, Mizuho Financial, Toshiba, Hitachi and other exporters were among the heaviest volumes traded. Toyota had the heaviest turnover and closed down 1.4%, a fall matched by Honda while Panasonic was down a little over 2%.

At the end of play the Nikkei was down 1.96% to 18,070. It’s been a volatile week in Tokyo. Here’s the chart;

Elsewhere in the region stocks were mildly positive with the Shanghai composite ending the week with a 0.4% gain at 3,097 while stocks in Hong Kong closed up 0.3%.

Chinese stocks are still down around 2.5% on the week. But in further signs that the economy might be stabilising, the August house price index printed down 2.3% down, an improvement from the -3.7% print for July. Clearly property is becoming less of a drag on the economy than recently many commentators feared.

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