Markets in Asia ended mostly higher on the final trading day of the week as traders awaited direction from U.S. Federal Reserve chief Janet Yellen's comments due later.
In Japan, the Nikkei 225 improved 62.38 points, or 0.4%, to end the week at 16,834.84, after data showed consumer prices in April fell, likely putting additional pressure on the Bank of Japan to ease at its next monetary policy meeting, set for June.
In Hong Kong, the Hang Seng index rocketed 179.66 points, or 0.9%, to 20,576.77
Before market open, Japan's Statistics Bureau released the consumer price index (CPI) for April, which showed a 0.3% annual decline in core CPI, which excludes food prices but counts oil products. It was a tad better than the median Reuters poll estimate of a 0.4% fall.
Japan's shares likely also received support after Reuters reported, citing local media reports, that Prime Minister Shinzo Abe was considering delaying a planned sales tax hike for two years.
That may assuage concerns that the sales tax hike could damp already weak economic growth. But after the G7 leaders' summit in western Japan Friday, Abe told reporters a decision would be reached before July upper house elections.
The Japanese yen reacted mildly to the CPI data, with the U.S. dollar-yen pair at 109.67 in the afternoon Asia time, after climbing as high as 109.99 during the session after the data, compared with around 109.61 before market open. Major exporters closed mixed, with Toyota shares down 0.1%, Nissan nearly flat and Sony up 0.2%
A stronger yen is usually a negative for exporters as it reduces their overseas profits when converted into local currency.
Energy plays ended mixed in Asia, with Santos shares up 0.7% ,Oil Search adding 1.8%, and Inpex up 3.6%
Investors will look ahead to comments from Federal Reserve Chair Janet Yellen, who is expected to answer questions Friday afternoon in the U.S. as she receives an award at Harvard University.
CHINA
The CSI 300 Index faded 1.71 points, or 0.1%, to 3,062.50.
Chinese mainland shares of Sinopec were down 1.3%
The Chinese yuan was relatively weaker against the greenback at 6.5601, after the People's Bank of China set the yuan mid-point fix at 6.5490 on Friday. Earlier this week, the Chinese central bank had fixed the yuan mid-point at lows not seen since 2011, suggesting a stronger yuan against the dollar.
In other markets
In Korea, the Kospi Index recovered 12.11 points, or 0.6%, to 1,969.17
In Singapore, the Straits Times Index dropped 1.71 points, or 0.1%, to 2,802.51
In Taiwan, the Taiex Index jumped 69.49 points, or 0.8%, to 8,463.61
New Zealand’s NZX 50 gained 44.67 points, or 0.6%, to 6,992.55
The ASX 200 progressed 17.82 points, or 0.3%, to 5,405.91
