Asian Shares Mixed Despite Hopes For Chinese Stimulus

(RTTNews) - Asian stocks ended mixed on Friday despite hopes that China will follow through on its pledges to stimulate growth in the new year.

To steer demand for credit, China's central bank is likely to cut interest rates from the current level of 1.5 percent "at an appropriate time" in 2025, the Financial Times reported.

The dollar held steady near two-year highs in Asian trade on expectations for higher-for-longer U.S. interest rates and amid the threat of tariffs from the incoming Trump administration.

Gold dipped on profit taking following a 1 percent gain in the previous session, bolstered by increased safe-haven demand.

Oil was little changed after surging to a two-month high the previous day, fueled by economic growth optimism in China and signs of falling U.S. crude inventories.

China's Shanghai Composite index fell 1.57 percent to 3,211.43 as investors braced for more economic pain in 2025.

Trade tensions and tariff worries also weighed on sentiment as China announced the enforcement of export control measures targeting 28 U.S. entities.

Hong Kong's Hang Seng index settled 0.70 percent higher at 19,760.27, giving up some early gains.

Japanese markets were closed for a holiday. Seoul stocks rallied as some positive news from the tech sector helped investors shrug off continued political uncertainty in the country.

The Kospi average jumped 1.79 percent to 2,441.92 even as investigators from the corruption watchdog moved in early Friday to execute an arrest warrant for impeached President Yoon Suk Yeol over martial law.

SK Hynix surged 6.3 percent after the memory giant announced it will showcase its AI memory technologies at CES 2025, to be held in Las Vegas from 7-10 January.

Australian markets closed higher, led by financials and energy stocks. The benchmark S&P/ASX 200 climbed 0.60 percent to 8,250.50 while the broader All Ordinaries index ended 0.55 percent higher at 8,511.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.33 percent to 13,067.83 amid concerns that U.S. President-elect Donald Trump's policies on tariffs may fuel inflation. U.S. stocks fluctuated before ending lower overnight and the dollar hit a two-year high after data showed weekly jobless claims unexpectedly dropped to an eight-month low, reigniting worries about high interest rates.

Sentiment was also dented by Tesla's annual sales drop and reports suggesting that Apple is offering some pretty huge discounts on its latest phones in China.

The tech-heavy Nasdaq Composite and the S&P 500 both slipped around 0.2 percent, notching their fifth straight daily decline, the longest skid since April. The Dow dipped 0.4 percent.