Shares in Japan rebounded Friday after a pledge by Japanese Prime Minister Shinzo Abe to strengthen the country’s economy, while markets elsewhere mostly fell amid the prospect of higher rates in the U.S.
The Nikkei 225 index recovered 308.68 points, or 1.8%, to 17.880.51.
In Hong Kong, the Hang Seng Index advanced 90.34 points, or 0.4%, to 21,186.32
The gains came as Japanese Prime Minister Shinzo Abe announced an ambitious goal to expand the nation’s economy by around a fifth, though he didn’t say exactly how or when that growth would be achieved.
The announcement, at a news conference where Abe was officially appointed to another three-year term as party leader, comes as Japan’s economy is sputtering, fueling questions about the success of his Abenomics growth program.
Abe said he would aim to increase the size of Japan’s economy to ¥600 trillion ($5 trillion U.S.), from around ¥490 trillion in the latest fiscal year. “Creating a strong economy will continue to be my top priority,” he said.
The comments also follow Japanese government data showing that consumer prices fell for the first time in over two years in August, the latest setback for Abe’s campaign against deflation. The country’s core consumer-price index, which excludes fresh food, fell 0.1% from a year earlier, could spur the central bank to more action in pursuit of its 2% inflation goal.
Elsewhere, the region’s market were closing out the week with losses, after weak Chinese manufacturing data on Wednesday renewed concerns about the ripple effects of its slowing economy. Shares in Malaysia, Hong Kong, Taiwan and Indonesia are all down more than 3% this week. Earlier this month, worries about China’s devaluation of the yuan in August abated and volatility in Chinese domestic shares subsided.
On Friday, markets finished mixed, as investors assessed the latest clues on when the Fed might increase rates.
Australia’s S&P ASX 200 fell 0.6%, giving up gains from earlier in the day. Although the ASX 200 managed to wrap up the week above Wednesday’s two-year low, it has fallen nearly 15% from its late-April high.
Markets in Australia, Hong Kong, Taiwan and South Korea are closed next Monday.
Currencies in the region mostly fell on the back of a stronger U.S. dollar on Friday.
The Japanese yen was down 0.3% at ¥120.46 against the U.S. dollar.
The Australian dollar fell to as low as 69.75 U.S. cents before rebounding to around 70.30 U.S. cents. The currency has been heading toward a six-year low, reached earlier this month.
The New Taiwan dollar strengthened slightly after hitting a six-year low Thursday, when country’s central bank lower interest rates for the first time since 2009. The New Taiwan dollar traded at 32.97 per U.S. dollar.
In other markets
The CSI 300 in Shanghai erased 53.05 points, or 1.6%, to 3,231.95
In Singapore, the Straits Times Index returned from holiday to deduct 13.10 points, or 0.5%, to 2,832.64
The Kospi also came back from a day off to fall 4.25 points, or 0.2%, to 1,942.85
In Taiwan, the Taiex index moved up 9.25 points, or 0.1%, to 8,132.35
The NZX 50 gained 10.54 points, or 0.2%, to 5,687.35
The ASX 200 Index docked 29.56 points, or 0.6%, to 5,042.11
