Asian stocks drifted on Friday, with markets in China edging slightly higher as investors stayed cautious ahead of a major holiday and details from the highly anticipated unveiling of a free-trade zone in Shanghai. Stocks in Tokyo slid after Japan's inflation spiked.
The Nikkei 225 index in Japan fell 39.05 points, or 0.3%, to 14,760.07
In Hong Kong, the Hang Seng index regained 82.01 points, or 0.4%, to 23,207.04
Stocks in Hong Kong ended in positive territory following Wall Street's gains, though trading was subdued ahead of China's Golden Week holiday.
Japanese shares fell as a weak inflation reading weighed on investor sentiment. Core consumer prices rose 0.8% nationwide in August, slightly stronger than economists had predicted, although prices in the capital city of Tokyo recorded a weaker-than-expected increase.
Shares of major Japanese exporters were lower with Kyocera down 2.6% and Suzuki Motor Corp. off 1.8%.
Signs of economic stabilization in China — Australia’s largest trading partner — have spurred a strong quarter for the Australian market, one of the Asia’s best performers with a 10.5% increase so far.
Energy firms advanced in Sydney. Senex Energy Ltd. rose 2.7% after Australian investment bank Macquarie Group Ltd. put a bullish rating on the stock. Santos Ltd. gained 1.5%.
In currencies, the U.S. dollar slipped to 98.65 yen from 99.00 yen.
CHINA
Markets in China were subdued ahead of the launch Sunday of a pilot free-trade zone in Shanghai.
The Shanghai CSI 300 index forged ahead 10.53 points, or 0.4%, to 2,394.97
China's leaders have already loosened restrictions on foreign investment in the 29-square-kilometre zone. Further details are expected when the zone is inaugurated.
One expert predicted that authorities would relax taxes, trade quotas and administrative red tape in the zone.
In other markets;
Korea’s Kospi index added 4.48 points, or 0.2%, to 2,011.80
Taiwan’s Taiex index hiked 46 points, or 0.6%, to 8,230.68
The Singapore Straits Times Index restored 15.87 points, or 0.5%, to 3,210.18
In New Zealand, the Exchange 50 Gross Index gained 17.21 points, or 0.4%, to 4,782.68
In Australia, the S&P/ASX 200 progressed 12.61 points, or 0.2%, to 5,307.06
