Asian Shares Mostly Higher After Mixed China Data

(RTTNews) - Asian stocks advanced on Friday after China reported mixed economic data and the country's central bank boosted liquidity injection through medium-term policy loans while keeping the interest rate unchanged.

The dollar wallowed near four-month lows in Asian trade and gold consolidated its weekly gains while oil prices were on course to snap a seven-week losing streak.

China's Shanghai Composite index fell 0.56 percent to 2,942.56 as investors reacted to mixed economic readings and the announcement of new measures to support the property market.

Beijing and Shanghai relaxed home purchase restrictions to help revive the sluggish housing market.

China's industrial output grew more than expected in November, but the readings on retail sales and fixed asset investment pointed to continued weakness in the economy. Hong Kong's Hang Seng index jumped 2.38 percent to 16,792.19 as lower bond yields on expectations of U.S. rate cuts in 2024 boosted heavyweight technology stocks.

Japanese shares rose notably amid expectations that the Bank of Japan will maintain its ultra-dovish stance at its policy meeting next week.

Japanese manufacturing activity contracted for a seventh straight month in December, while service sector activity improved, data showed earlier in the day.

The Nikkei average climbed 0.87 percent to 32,970.55, snapping a two-week losing run as the yen weakened after touching a four-and-a-half month high. The broader Topix index settled 0.47 percent higher at 2,332.38.

Automakers surged, with Nissan and Subaru rallying 2.9 percent and 4.5 percent, respectively. A decline in U.S. bond yields weighed on the financial sector, with banks Mitsubishi UFJ Financial and Sumitomo Mitsui Financial falling 2-3 percent.

South Korea's KOSPI average rose 0.76 percent to 2,563.56 led by technology stocks. Robotics shares also benefited from reports that the government will inject 3 trillion won in the industry by 2030. Top automaker Hyundai Motor jumped 4.3 percent and its affiliate Kia added 2.4 percent.

Australian markets closed higher, with resource stocks and banks leading the surge. The benchmark S&P/ASX 200 closed 0.88 percent higher at 7,442.70 while the broader All Ordinaries index ended up 0.82 percent at 7,661.90.

Investors shrugged off data showing that Australian private sector business activity continued to contract in December.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index finished marginally lower at 11,550.20 despite improved manufacturing data.

U.S. stocks eked out modest gains overnight to extend the previous session's strong rally, with strong retail sales data for November and hopes of deeper rate cuts next year underpinning sentiment.

Weekly jobless claims stood at 202,000 for the week ended 9 December, lower than the estimated 220,000.

The Dow inched up 0.4 percent to reach a new record closing high while the tech-heavy Nasdaq Composite rose 0.2 percent and the S&P 500 edged up 0.3 percent to tough their best closing levels in almost two years.