Japanese shares ended Friday at their highest level this year, paced by trading houses such as Marubeni Corp. on a broker upgrade as well as by upbeat commodity prices.
The Nikkei 225 index in Tokyo tacked on another 80.14 points, or 0.8%, to end the week at 10,597.33, a closing level that the benchmark hasn't seen since early October.
In Tokyo, shares of Marubeni jumped 5.8% after Goldman Sachs upgraded the stock to buy from neutral, with other commodity trading houses also up as the brokerage raised its coverage view on the sector to attractive. Shares of Mitsubishi Corp. gained 3.3% and Mitsui & Co. added 2.8%.
Higher commodity prices recently also supported gains for some resource stocks, with Nippon Light Metal rising 1.9% and Inpex Corp. 1.8% higher in Tokyo, while Posco gained 2.2% in Seoul.
In Hong Kong, the Hang Seng index eked out a gain of 32.03 points, or 0.2%, to 20.893.33.
The weak performance in Shanghai also weighed on China-related shares traded in Hong Kong, capping the Hang Seng Index's gains for the day at 0.2% after a volatile session for the benchmark.
Shares of Yanzhou Coal Mining rose 2.3% in strong volume as trade resumed for the first time since Monday, after the company confirmed that it had made a A$3.54 billion ($2.98 billion U.S.) bid for Australia's Felix Resources. In Sydney, shares of Felix jumped 4.1%.
Also on the move in Hong Kong, shares of Alibaba.com lost 3.2% as investors reacted to financial results showing the online business-to-business platform provider posted a 34% on-year decline in second-quarter net profit.
While production was recovering at most manufacturers, said one expert, the improvement throughout the region was mainly a response to drastic cuts in inventories, meaning that "unless consumption picks up, the prospects for an economic recovery remain uncertain."
Australia's S&P/ASX 200 ended higher, as comments from the nation's central bank governor reinforced expectations for an economic recovery and stock markets in both Sydney and New Zealand, where the NZX 50 also gathered momentum.
In Sydney, Leighton Holdings soared 7.3% following above-consensus results.
In Taipei, investors bid construction plays higher as the government planned a special budget to deal with the aftermath of Typhoon Morakot. Shares of Shining Building Business gained 1.1%, with Taiwan Cement advancing 3.2%.
New Zealand stocks were helped by continued expectations for a recovery in the global economy.
Nigel Scott, an adviser at ABN Amro Craigs, said "the data that we've seen in recent weeks have stopped getting worse. And the results season here has gone all right so far."
Shares of Auckland International Airport was up 1.7% as Fisher & Paykel Appliances rose 1.2%.
CHINA
Shanghai’s 300 Composite Index lost 96.36 points, or 2.8%, to 3,344.46, also taking losses during a week marked by investor concerns that fine-tuning monetary policy could have the effect of hurting market liquidity.
Bank shares traded mostly lower in Shanghai, with China Merchants Bank ending 2.4% down on its rights share plan. Other banks also declined, as shares of Bank of China gave up 3% and Industrial & Commercial Bank of China lost 3.2%.
Analysts, however, remain positive about China's growth prospects, with Morgan Stanley raising its economic growth forecast for the mainland to 9% for 2009 and 10% for 2010.
Elsewhere:
Singapore’s Straits Times Index gained 17.33 points, or 0.7%, to 2,631.51
South Korea’s Kospi index finished the day ahead 26.77 points, or 1.7%, to 1,591.41
Taiwan’s Taiex prospered 34.55 points, or 0.5%, to 7,069.51
New Zealand’s NZX 50 Index strengthened 22.41 points, or 0.7%, to 3,151.26
Australia’s S&P/ASX 200 moved ahead 25.10 points, or 0.6%, to 4,461.00
