Asia stock indexes traded on a softer footing Friday, finishing lower for the session but up for the week overall, with Tokyo and Hong Kong helped by optimism that China‘s economy had made a turn for the better.
Japan’s Nikkei 225 Index tacked on 19.82 points, or 0.2%, to finish this week at 9,002.68
In Hong Kong, the Hang Seng Index improved 33.05 points, or 0.2%, to 21,551.76, its seventh straight advance, to end at a more than seven-month high.
The Bank of Japan is likely to concede that it won’t meet its 1% inflation target when the central bank unveils revised economic forecasts at its Oct. 30 policy board meeting, laying the ground for more aggressive a policy, according to experts.
Investors were also on alert for developments emerging from a two-day European Union summit in Brussels, although expectations were low for any major developments.
In foreign-exchange trading, the yen continued to weaken. The U.S. dollar bought ¥79.33, up from ¥79.25 in late trading Thursday.
Japanese exporters have had a strong run this week and some firms gained again on Friday, with Honda Motor Co. trading up 1.1%.
Meanwhile, shares of NEC Corp. surged 10.5% after a Nikkei report that the firm likely earned a six-month operating profit of around 40 billion yen, which would far surpass forecasts.
Investors were selling out of Tokyo-listed consumer staples firms, however, with Japan Tobacco Inc. moving down 1.6% and Kirin Holdings Co. shedding 2.2%.
Australian investors were pulling out of banks, with Australia & New Zealand Banking Group Ltd. down 1.1%. National Australia Bank Ltd. fell 1.1% after stating that its fiscal-year cash earnings were expected to be in line with 2011 figures while it raised provision levels.
In Hong Kong, however, China Construction Bank Corp. ended unchanged, while shares of Bank of China Ltd. rose 3%. Both stocks made recent gains after a unit of China’s sovereign-wealth fund said it will continue to buy shares in major lenders.
Some Chinese commodity-sector shares extended post-data gains made Thursday, with Aluminium Corp. of China Ltd. up 0.6% in Hong Kong.
In Australia, mining heavyweights were on the move: BHP Billiton Ltd. added 1.3% as rival Rio Tinto Ltd. moved up 0.7%.
In South Korean trading, heavyweight technology firm Samsung Electronics Inc. fell 2.6%, with the move working to pressure the Kospi benchmark
Also Friday, MGM China Holdings gained more than 4.3%. The casino operator announced it has secured a land lease agreement from the Macau government to build a new luxury resort and casino.
Meanwhile, mainland China property-focused stocks moved lower on profit taking after recent gains. Shares of China Overseas Land & Investment fell 0.5% after hitting an all-time high earlier in Friday’s session.
CHINA
One expert said he expects news of economic reforms and other changes in the run-up to the Party Congress in November to help bolster China stocks in coming weeks.
The Shanghai CSI 300 index shaved off 3.61 points, or 0.2%, to 2,332.47
China’s incoming leaders will likely opt for policy easing in the short run as "monetary outflows have amounted to a de facto monetary tightening," he said.
In other markets
The Singapore Straits Times Index faded 11.44 points, or 0.4%, to 3,048.92
Korea’s Kospi index dipped 15.28 points, or 0.8%, to 1,943.84
Taiwan’s Taiex Index dumped 56.65 points, or 0.8%, to 7,408.76
New Zealand’s NZX 50 subtracted 13.79 points, or 0.3%, to 3,988.16
Australia’s ASX Index rose 11.64 points, or 0.3%, to 4,571.07
