Asian markets down as traders await US jobs report
Japan's Nikkei 225 ended flat while the broader Topix index, which a day earlier surpassed its previous peak set in 1989, also shed some of its gains.
"The fact that the Topix, which indicates the overall performance of the Japanese market, has in turn broken its own record, is news of great importance," said analyst Takuma Ikemoto of the Tokai Tokyo Intelligence Lab.
The capitalisation of Japan's Prime market has also increased significantly, showing "that Japanese companies are constantly strengthening their ability to generate profits and... indicates that the Japanese stock market has entered a new phase", he said.
The yen continued strengthening against the dollar after hitting its lowest level in nearly four decades.
Samsung Electronics' forecast that second-quarter profits would beat expectations by more than 25 percent, due to rising chip prices and growing demand for generative AI, sent its share price higher and spurred the market in Seoul.
But shares in Hong Kong ended a four-day winning streak, while stocks in mainland China were trading lower after the European Union slapped extra provisional duties of up to 38 percent on Chinese electric car imports on Thursday.
A European Commission probe launched last year concluded that state subsidies for Chinese EV manufacturers were unfairly undercutting European rivals, which Brussels wants to shield as they transition from thermal to electric power.
Chinese markets have suffered losses for weeks, with the world's second-largest economy beset by a debt crisis in the property sector, persistently low consumption and high youth unemployment.
Trading in Europe was dominated by polls in the UK and France.
The return of the main opposition Labour Party to power in Britain ended 14 years of Tory rule and strengthened the pound even before results were announced.
An expected period of stability has ushered in optimism for investors after a prime ministerial game of musical chairs in Downing Street.
In France, efforts to block the far-right from taking over the government have boosted the euro and breathed life into European markets.
But analysts remain wary that the second-biggest economy in the European Union could be headed for a period of political deadlock if there is no overall winner in the polls.
Investor sentiment was also lifted Thursday as softer US labour market data gave the Federal Reserve room to cut interest rates, with another key jobs report due Friday.
"We expect US labour market data will show more signs of cooling in June," Alvin Tan of RBC Capital Markets said.
Gains were capped, with Wall Street shut for the July 4 Independence Day holiday in the United States.
Key figures around 0720 GMT
Tokyo - Nikkei 225: FLAT percent at 40,912.37 (close)
Hong Kong - Hang Seng Index: DOWN 1.0 percent at 17,850.47
Shanghai - Composite: DOWN 0.3 percent at 2,949.93 (close)
London - FTSE 100: UP 0.3 percent at 8,264.72 points
Euro/dollar: UP at $1.0823 from $1.0813
Pound/dollar: UP at $1.2768 from $1.2765
Dollar/yen: DOWN at 160.82 yen from 161.16 yen
Euro/pound: UP at 84.76 pence from 84.69 pence
West Texas Intermediate: UP 0.4 percent at $83.91 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $87.33 per barrel
New York - Dow: Closed for public holiday