Asian Shares End Mostly Higher In Cautious Trade

(RTTNews) - Asian stocks ended mostly higher on Friday after U.S. stocks rose for a second consecutive session overnight on easing geopolitical and trade tensions between the United States and Europe.

Lingering uncertainty about U.S. policy weighed on the dollar, helping lift gold prices to a record high above $4,950 an ounce.

Oil edged up as U.S. President Trump's comments about U.S. naval movements toward Iran reignited concerns over potential conflict escalation and supply disruptions in global markets.

China's Shanghai Composite index rose 0.33 percent to 4,136.16 after consumer electronics giant Xiaomi announced a stock buyback program worth up to HK$2.5 billion ($321 million).

Hong Kong's Hang Seng index gained 0.45 percent to close at 26,749.51, extending gains for a third consecutive session following Trump's announcement of a framework deal with NATO on a future Greenland deal.

Japanese markets eked out modest gains while the yen lagged after the Bank of Japan held rates on hold but signaled that it was likely to continue raising interest rates in 2026.

Earlier in the day, data showed that Japan's headline inflation rate slowed sharply to 2.1 percent in December, its lowest level since March 2022, on the back of government subsidies.

January PMI readings delivered an upbeat signal, indicating a broadening recovery across the Japanese private sector.

The Nikkei average edged up by 0.29 percent to 53,846.87 while the broader Topix index settled 0.37 percent higher at 3,629.70.

Seoul stocks ended higher for a third day running, led by brokerage and technology stocks. The Kospi average jumped 0.76 percent to 4,990.07, hitting a fresh peak after a choppy session.

Chipmaker Samsung Electronics ended marginally lower after Intel forecast quarterly revenue and profit below Wall Street estimates.

Australian markets rose modestly in cautious trade as stronger jobs and PMI data boosted expectations that an RBA interest rate hike could be coming sooner rather than later.

The benchmark S&P/ASX 200 inched up by 0.13 percent to 8,860.10 while the broader All Ordinaries index closed up 0.19 percent at 9,189.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.80 percent to 13,448.24 after data showed inflation pushed above the Reserve Bank of New Zealand's 1-3 percent target band in the fourth quarter.

U.S. stocks rose overnight, adding to the previous session's rally on relief over President Trump's U-turn on Greenland.

Investors also cheered strong economic data and Nvidia CEO Jensen Huang's comments that the rapid expansion of AI infrastructure will create high-paying trade jobs.

In economic news, applications for U.S. unemployment benefits steadied at low levels last week after a volatile holiday season and consumer prices increased in line with economist estimates in November while Q3 GDP rose 4.4 percent on an annualized basis, the fastest in two years, driven by strong consumer spending, a slew of data revealed.

The Dow and the S&P 500 both rose by 0.6 percent while the tech-heavy Nasdaq Composite advanced 0.9 percent.