(Bloomberg) -- Asian stocks swung between gains and losses, after two days of declines, as investors weighed the prospects for global growth and the timing for higher U.S. interest rates.
The MSCI Asia Pacific Index climbed 0.2 percent to 128.71 as of 9:11 a.m. in Tokyo, after falling as much as 0.2 percent. Japan's Topix index was little changed, while stock gauges in Australia and South Korea climbed before markets opened in China. The S&P 500 Index advanced 0.5 percent as data showed the fastest expansion in U.S. services industries in seven months.
“We are once again seeing a situation where the U.S. economy is seemingly looking OK, while the U.K. and Europe are showing increasing signs of fragility,” said Chris Weston, chief market strategist at IG Ltd. in Melbourne.
Asian markets were whipsawed over the past month as Britain's shock vote to leave the European Union rattled confidence. While markets quickly recouped losses, equities slumped in the past two sessions amid concerns over Brexit's impact on global growth. Confidence in European equity markets is being sapped in the vote's aftermath as U.K. property funds freeze withdrawals and concerns about Italian banks escalate.
All eyes turn Friday to U.S. monthly payrolls data. Following the tepid pace of growth in the first quarter, the focus is now on how strongly the world's largest economy could rebound in the second quarter. Minutes from the Federal Reserve's June meeting showed officials were unnerved by May's weak payrolls report ahead of the U.K. vote.
Japan's Topix fell 2.2 percent over the previous two sessions. The yen has continued to strengthen against the dollar this week, trading near the highest levels in more than two years, as investors weigh the appetite of central banks to boost stimulus. The Japanese currency rose 0.2 percent to 101.11 to the dollar on Thursday.
Australia's S&P/ASX 200 Index increased 0.7 percent. New Zealand's S&P/NZX 50 Index advanced 0.5 percent, while South Korea's Kospi index added 0.9 percent.
Futures on Hong Kong's Hang Seng Index lost 0.4 percent, while contracts on the FTSE China A50 Index gained 0.2 percent. Markets in Indonesia and Malaysia are closed for holidays.
To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net. To contact the editors responsible for this story: Jeff Sutherland at jsutherlan13@bloomberg.net, Tom Redmond
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