Asian Shares Mostly Higher With Ukraine Talks In Focus

(RTTNews) - Asian stocks ended mostly higher on Friday as investors reacted to mixed economic data from China and Japan, and awaited the outcome of the Alaska summit between U.S. and Russian Presidents.

China's Shanghai Composite index rallied 0.83 percent to 3,696.77 amid government efforts to boost liquidity in the banking system.

China's central bank on Thursday said that it will conduct 500 billion yuan ($69 billion) of outright reverse repos in an attempt to maintain an appropriately accommodative liquidity environment.

Hong Kong's Hang Seng index fell 0.98 percent to 25,270.07, dropping for a second straight session as a slew of economic data from China showed a slowdown across the country's economy last month.

China's factory output growth slumped to an eight-month low in July and retail sales growth slowed sharply, highlighting demand woes at home.

Fixed asset investment grew just 1.6 percent in the first seven months of the year from the same period last year and new-home prices fell at a faster pace in July, raising worries of a deepening downturn.

Japanese markets rose sharply to close at a record high as the yen weakened and second-quarter GDP data beat forecasts. The Nikkei average soared 1.71 percent to 43,378.31 while the broader Topix index closed up 1.63 percent at 3,107.68.

Expectations of higher interest rates boosted banks, with Mitsubishi UFJ Financial surging 6 percent to extend gains for an eighth consecutive session and hit a record high.

Seoul stocks ended on a flat note, with the Kospi average finishing marginally higher at 3,225.66 ahead of the high-stakes U.S.-Russia summit on Ukraine.

Australian markets rose notably to close at a record high on the back of strong earnings from major companies and rate cut optimism.

The benchmark S&P/ASX 200 climbed 0.73 percent to 8,938.60 while the broader All Ordinaries index settled 0.69 percent higher at 9,212.10.

Among the top gainers, energy firm Ampol jumped 7.7 percent to log its highest close since February 3 and lithium miner Liontown Resources added 5.6 percent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX-50 index rose 0.43 percent to 12,889.38, extending gains for a third straight session after a survey showed manufacturing activity in the country expanded in July.

Gold ticked higher in Asian trade as the dollar failed to sustain its recovery from the previous session. Oil prices fell as disappointing U.S. and economic data raised worries about fuel demand.

Overnight, U.S. stocks fluctuated before ending narrowly mixed as a much hotter-than-expected PPI inflation print dampened investor euphoria over a possible September rate cut.

Data showed producer prices rose 0.9 percent month-over-month in July compared to expectations of 0.2 percent.

On an annual basis, prices rose 3.3 percent, the most since February and up from an upwardly revised 2.4 percent in June.

"Core" producer prices, which exclude food, energy, and trade services, saw the largest increase in three years.

The S&P 500 inched up marginally to a new record closing high, while the tech-heavy Nasdaq Composite and the Dow ended flat with negative bias.