Asia stocks mostly declined Friday after a sizeable increase in Chinese inflation, but Japanese shares advanced on the back of fresh losses for the yen.
In Japan, the Nikkei 225 index prospered 148.93 points, or 1.4%, to 10,801.57, with the move bringing year-to-date gains for the index to 3.9%.
In Hong Kong, the Hang Seng index subtracted 90.24 points, or 0.4%, to 23,264.07
Still, Japanese exporters were outperforming in Asia as the dollar reached ¥89.01 Friday following data showing Japan posted a ¥222.4-billion ($2.5 billion U.S.) current-account deficit for November — the second-largest on record — and approval of a ¥10.3-trillion stimulus plan from the Japanese government
The dollar had been trading at ¥88.59 in late North American action Thursday. Similarly, the euro gained against the yen, reaching ¥118.17, up from ¥117.41 in late trading Thursday.
Following the yen moves, Panasonic Corp. rose 4.2%, Olympus Corp. added 4.4%, and Nintendo Co. climbed 5.6%.
Sharp Corp. soared 12.6% even after the firm denied a report that it returned to an operating profit in the three months to the end of December.
Uniqlo clothing-chain owner Fast Retailing Co. climbed 4.8% after hiking its full-year profit outlook.
Energy and mining firms were lower in Hong Kong, with Aluminum Corp. of China Ltd. dropping 3%, Cnooc Ltd. lower by 1.9% and Citic Pacific Ltd. down 3.6%.
In Australian trading, mining companies extended early losses after the Chinese data, with BHP Billiton Ltd. dropping 2% and Rio Tinto Ltd. falling 1.9%.
Both firms were downgraded to neutral from outperform by Macquarie on Friday, with the broker citing recent share-price gains.
South Korean auto makers were weighing down the market in Seoul as the lower yen raised the threat from Japanese rivals. Hyundai Motor Co. lost 1.7%, with affiliate Kia Motors Corp. trading down 2.2%.
Against the Korean won, for example, the yen has depreciated by almost 20%, they said, while the Japanese currency has lost almost 15% against the Chinese yuan.
Friday’s moves in Asia came after the U.S. S&P 500 index ended at its highest level in five years Thursday, as U.S. investors took their first chance to react to the Chinese trade data, with financials at the front of the advance.
The financial sector also saw some buying in Asia on Friday, with HSBC Holdings PLC up 0.8% in Hong Kong, while awaiting approval for the sale of its stake in Ping An Insurance Group Co., which traded 1.3% higher.
Some reports say Chinese regulators may block the HSBC-Ping An deal over funding questions.
Over in Sydney, National Australia Bank Ltd. advanced 0.6%, while Sumitomo Mitsui Financial Group Inc. rose 1.4% in Tokyo.
CHINA
However, the rise in Chinese consumer prices at a quicker pace than expected in December dampened investor enthusiasm in other markets.
The Shanghai CSI 300 dipped 47.34 points, or 1.9%, to 2,483.23
Chinese consumer prices rose by 2.5% in December, slightly exceeding consensus economist estimates and representing a seven-month high for the data series.
In mainland Chinese stock action, Angang Steel Co. declined 2.4% in Shenzhen, while property developer Gemdale Corp. lost 4.1% in Shanghai.
In other markets
In Singapore, the Straits Times Index deducted 9.75 points, or 0.3%, to 3,216.50
Korea’s Kospi Index subtracted 10.13 points, or 0.5%, to 1,996.67
Taiwan’s Taiex Index gained 7.51 points, or 0.1%, to 7,819.15
The NZX 50 tacked on 12.67 points, or 0.3%, to 4,131.75
Australia’s ASX Index fell 13.47 points, or 0.3%, to 4,709.48
