Asian stocks closed out the week on a mostly positive note with banking shares such as Mitsubishi UFJ Financial Group back in favor as investors bet a weekend buyout of beleaguered Lehman Brothers Holdings Inc. would set the tone for a positive start next week.
The benchmark Nikkei 225 index closed up 112.26 points or 0.9% at 12,214.76 while the benchmark Hang Seng Index losing 35.82 points or 0.2% to 19,352.90.
On the economic front, The Japanese economy contracted by a revised 0.7% in the second quarter of 2008, the Economic and Social Research Institute said, slightly worse than last month's preliminary report of a 0.6% quarterly decline.
Meanwhile, the revised industrial production report released by Japan's Ministry of Economy Trade and Industry showed a 1.3% growth in July compared to the 0.9% growth estimated earlier. Year-over-year, industrial production rose at an upwardly revised 2.4% rate.
Mitsui Sumitomo Financial Group jumped 5.5%, Mitsubishi UFJ Financial Group rose 4.3% and Mizuho Financial Group surged 5.2%.
Major exporters were mixed, as the dollar held steady against the yen. Toyota Motor lost 0.8% and major office equipment maker Canon slipped 0.3%, but Sony gained 1.1%.
In the property sector, Mitsui Fudosan jumped 4.9% and Sumitomo Realty & Development rose 4.8%.
Trading house Mitsui & Co soared 5.5% and Mitsubishi Corp rose 3.4%. Oil and gas miner Inpex Holdings climbed 3.0%.
The Chinese market closed little changed, as industrial output data triggered fresh concerns about slowing economic growth. The benchmark Shanghai Composite Index closed up 0.69 points or 0.03% at 2,079.67 after touching a 21-month intraday low of 2,064.29. The stock markets will be closed for a public holiday on Monday. The National Bureau of Statistics said that industrial value-added output in August rose 12.8% on year, slowing from 14.7% growth in July. The August increase was the weakest in six years.
Meanwhile, retail sales in China jumped 23.2% on year in August following a 23.3% annual increase in July.
Power stocks gained on expectations of imminent retail power price hikes, while nonferrous metals stocks rebounded following recent sell-offs.
Datang International Power Generation advanced 2.0%, Huadian Power International rose 1.4% and Huaneng Power International climbed 1.1%.
Yunnan Copper Industry jumped 3.6% and Aluminum Corp of China added 0.5%. Zijin Mining moved up 0.8%. Airlines rose on lower crude oil prices. Air China advanced 2.8% and China Southern Airlines gained 1.4%.
China Petroleum & Chemical Corp jumped 3.1%, while index heavyweight PetroChina closed unchanged.
Financial stocks underperformed. China Merchants Bank fel 1.1% and China Life Insurance declined 0.4% yuan after the company that it will invest eight billion yuan in three highway construction projects in the northern city of Tianjin. Industrial and Commercial Bank of China shed 1.9%.
Property developer, China Vanke gained 1.4%.
Elsewhere:
Indonesia's Jakarta Composite index plunged 3.5% to 1,804.
Singapore's Straits Times index closed up 1.2% at 2,570.
Taiwan's Taiex closed up 0.9% at 6,310.
Malaysia's KLCI closed up 0.3% at 1,044.
India's Sensex lost 2.3% to 14,000.
South Korea's Kospi gained 2.4%.
Australia's S&P/ASX 200 rose 1.9%.
New Zealand's NZX 50 index added 0.8%.
with files from other wire services
