Asian markets were broadly higher Friday, with Japan’s Nikkei ending at its highest level in over three months as the yen continued to weaken, while HSBC Holdings PLC led banks higher in Hong Kong.
In Japan, the Nikkei 225 Index gained 69.74 points, or 0.8%, to end the week at 9,162.50, as waning expectations for quantitative easing from the U.S. and remarks from European leaders weakened the yen, thus aiding exporters.
Also helping to boost stocks in Tokyo, the Japanese government forecast nominal economic growth outpacing real growth in the fiscal year ending March 2014, marking a reversal of deflationary trends in place for 16 years.
The Hang Seng Index in Hong Kong regained 153.12 points, or 0.8%, to 20,116.07.
South Korea’s Kospi went the other way, losing 0.6%, with heavyweight Samsung Electronics Co. sliding amid concern over its patent litigation with Apple Inc.
Friday’s gains followed an overnight rally for U.S. shares, helped in part by German Chancellor Angela Merkel’s comment Thursday that her nation will do whatever it can to keep the euro.
In the wake of the remarks, Japanese financials were generally trading higher, with Mitsubishi UFJ Financial Group Inc. rising 2.2%, Sumitomo Mitsui Financial Group Inc. gaining 2%, and Nomura Holdings Inc. ended flat.
The comments also helped the yen ease lower, as the euro rose above the ¥98 level, and as weakness in Japanese bond yields helped the dollar advance to above ¥79.
Among Tokyo-listed exporters, Honda Motor Co. added 2.4%, Nikon Corp. gained 1.4% and Fanuc Corp. rose 2.2%.
Japanese techs also got a lift from the strong advance in their U.S. peers, with the tech-heavy Nasdaq closing 1% higher.
Shares of Toshiba Corp. added 3.7% after a Nikkei report that it had developed an engine magnet that didn’t need a key China-sourced rare earth.
Sharp Corp. rose 5.1% after a separate Nikkei report that it may sell off its copier and air-conditioner operations. Sharp later denied the report.
Over in Seoul, heavyweight Samsung Electronics Co. fell 3.8%.
A judge hearing Samsung’s patent dispute litigation with Apple reportedly said there were risks for both sides if the case went to verdict.
Also pressuring the broader Korean market, LG Electronics Inc. shed 2.5%.
In Hong Kong, shares of Tencent Holdings Ltd. climbed 1.5% after its recent strong earnings report, with insurance and energy stocks also rising in a generally positive market.
Those gains helped offset a 3.7% drop for heavyweight China Mobile Ltd. on top of its 5% tumble Thursday, when it reported weaker-than-expected results.
Aluminum Corp. of China Ltd., or Chalco, eased 0.3% after it reported a loss for the first half.
However, Chalco’s mainland-China listed shares shrugged off the result, finishing up 0.7%.
In other Hong Kong action, index heavyweight HSBC Holdings rose 1.4%, leading a broad advance among the financial sector and contributing the biggest points advance to the Hang Seng Index.
In other action, Australian shares gained, as earnings took centre stage in Sydney.
Santos Ltd. jumped 3.2% despite reporting first-half profit fell by almost half, with the shares appearing to benefit from the energy firm’s rise in underlying earnings and news that it may begin its first-ever shale-gas sales in October.
Conversely, QBE Insurance Group Ltd. stocks plunged 4.5% despite posting a gain in profit, as the insurer lowered its dividend and reported a smaller margin than expected.
Among other banks, Australia & New Zealand Banking Group rose 3% after a better-than-expected trading update.
CHINA
Mainland Chinese shares underperformed the region, as weak economic data remained as a weight on sentiment, with investors also shrugging off recent remarks from Premier Wen Jiabao suggesting more monetary policy action.
Shanghai’s CSI 300 index declined 6.19 points, or 0.3%, to 2,313.48,
In other markets
Korea’s Kospi index slid 11.37 points, or 0.6%, to 1,946.54
Taiwan’s Taiex Index dumped 22.29 points, or 0.3%, to 7,467.92
Singapore’s Straits Times Index doffed 0.78 points to 3,062.11
New Zealand’s NZX index grew 23.46 points, or 0.7%, to 3,639.66
Australia’s ASX Index added 39.93 points, or 0.9%, to 4,370.10
