Japanese stocks soared to finish at their best level in nearly three years on Friday, cheering a weaker yen, although most other regional markets dropped modestly on selling ahead of the weekend.
In Japan, the Nikkei 225 Index screamed higher by 305.78 points, or 2.9%, to 10,926.65, a level it hasn’t seen since April 2010.
In Hong Kong, the Hang Seng index fell 18.47 points, or 0.1%, to 23,580.43
The rally came as the yen dropped sharply overnight — sending the dollar well above ¥90 and the euro over ¥121 — after Deputy Economy Minister Yasutoshi Nishimura told Bloomberg late Thursday that "the [dollar’s] current level around ¥90 can be said to be a correction in the strong yen, but it isn’t over yet."
Shares of Hitachi Ltd. jumped 5.5% and robot maker Fanuc Corp. climbed 4.8%.
Sony Corp. surged 8.5%, Nissan Motor Co. advanced 2.6% and NEC Corp. rose 4.8%, after broadcaster NHK reported the three were considering an integration of their respective lithium-ion battery operations.
Dainippon Sumitomo Phama Co. zoomed 11.5% higher after Kyodo News reported that the firm will start clinical trials in Japan on a drug designed to target cancer stem cells.
South Korean stocks have also been the worst performers among major Asian markets so far this year, with the Kospi dropping 2.5% as investors fretted about the impact of a more competitive Japanese export sector. Japanese stocks, meanwhile, gained 5.1%, Hong Kong equities rose 4.1% and Australian shares added 4%.
Manufacturing surveys out from China, Europe and the U.S. on Thursday pointed to an improvement in the global economy, with the U.S. in particular seeing its strongest manufacturing expansion since March 2011.
Meanwhile, Hong Kong trading saw some weakness for the market’s biggest commodity-linked plays, with Aluminum Corp. of China Ltd. trading down 3.3% and PetroChina Co. losing 0.5%.
South Korean exporters felt the pain of yen weakness again on Friday, with Hyundai Motor Co. dropping 3.4%.
Kia Motors Corp. lost 4.9% after reporting a 6.7% drop in fourth-quarter net profit to 737.5 billion won ($689 million U.S.), in part due to a stronger Korean currency.
Samsung Electronics Co. tumbled 2.5% after the firm reported a 76% rise in fourth-quarter net profit to a record-high 7.04 trillion won ($6.6 billion U.S.) amid strong smartphone sales. Still, the result missed analysts’ forecasts for a net profit of 7.3 trillion won.
In Sydney, Karoon Gas Australia Ltd. surged 14.1% after the firm said that it had discovered oil off the Brazilian coast, although it cautioned about the find’s modest size.
Also behind Sydney’s advance Friday were gains from higher-dividend-paying stocks, including heavyweight telecom Telstra Ltd., which rose 0.4%, while banking group Westpac Banking Corp. gained 1.7%.
CHINA
The Shanghai CSI 300 ditched 11.08 points, or 0.4%, to 2,571.67
On mainland Chinese bourses, property companies and financials were weighing the market, with China Vanke Co. losing 2.1% in Shenzhen, while Poly Real Estate Group Co. declined 3.6% and China Construction Bank Corp slipped 1.1 in Shanghai.
In other markets
In Singapore, the Straits Times Index added 20.92 points, or 0.6%, to 3,269.31
Korea’s Kospi Index let go of 17.79 points, or 0.9%, to 1,946.69
Taiwan’s Taiex Index slid 23.41 points, or 0.3%, to 7,672.58
The NZX 50 gained 9.91 points, or 0.2%, to 4,199.82
Australia’s ASX Index took on 24.95 points, or 0.5%, to 4,835.17, for its eighth consecutive advance.
