Asia report: Markets rise on Friday, but finish week negative

Markets in Asia finished mostly higher on Friday, taking their lead from equities on Wall Street overnight, as investors rifled through some mixed economic data out of the US.

In Japan, the Nikkei 225 managed gains of 0.17% to 22,920.30, as the yen strengthened 0.16% against the dollar to last trade at JPY 105.63.

Fashion firm Fast Retailing was up 0.69%, while among the benchmark’s other major components, automation specialist Fanuc was down 1.5% and technology conglomerate SoftBank Group lost 0.11%.

The broader Topix index was 0.3% firmer by the end of trading in Tokyo, closing at 1,604.06.

On the mainland the Shanghai Composite was ahead 0.5% at 3,380.68, and the smaller, technology-heavy Shenzhen Composite gained 1.09% to 2,249.95.

South Korea’s Kospi advanced 1.34% to 2,304.59, while the Hang Seng Index in Hong Kong was 1.3% firmer at 25,113.84.

Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics rising 0.9% and chipmaker SK Hynix surging 3.76%.

Sentiment was mixed at the start of the Asian day, after fresh data from the US Labor Department overnight revealed initial weekly jobless claims had risen above one million again, missing Dow Jones forecasts for a reading of 923,000.

Continuing claims, which count the number of Americans receiving unemployment payments for more than two weeks in a row, were still on the decline, however.

“It would appear that this spike in claims could well be operating on a lag, and perhaps there is now an expectation that this delayed spike in claims levels will shake US politicians out of their complacency in delaying a new stimulus plan, and nudge them to pass new measures to cushion the possible effects of what is increasingly looking like a levelling off, or in a worst case outcome, a sharp slowdown in the US economy,” said CMC Markets chief market analyst Michael Hewson.

“Asia markets have taken their cues from the positive finish in the US; however, it hasn’t been enough to stop them finishing the week in negative territory.”

Oil prices were lower at the end of the Asian day, with Brent crude last down 0.69% at $44.59 per barrel, and West Texas Intermediate off 0.7% at $42.52.

In Australia, the S&P/ASX 200 was the odd one out, turning negative by 0.14% to 6,111.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 added 1.49% to settle at 11,835.94.

The down under dollars were a mixed bag against the greenback, with the Aussie last 0.1% weaker at AUD 1.3918, while the Kiwi strengthened 0.11% to NZD 1.5284.