Japanese stocks shot higher on Friday, capping off the Nikkei’s best week so far this year, as the region bounced back from Thursday’s weakness.
Japan’s Nikkei 225 index hiked 416.49 points, or 2.9%, to 14,868.67
The Hang Seng Index in Hong Kong grew 174.16 points, or 0.8%, to 22,568.24
Friday’s strong gain and a surge Tuesday after the Bank of Japan said it would increase incentives to spur bank lending helped the index end 3.9% higher on the week, its best weekly performance since November. The Nikkei however, remains Asia’s worst performer so far this year — down 8.8%.
The Nikkei was supported by a weaker local currency, with the U.S. dollar comfortably back above 102 yen overnight and strengthening during Asian trade. The greenback was last at ¥102.50, compared with ¥102.27 late Thursday in New York.
Trading in Japan has proved volatile in recent sessions as volume has dried up
The region was also picking itself up from a selloff in the previous session, when a preliminary measure of Chinese manufacturing activity hit a seven-month low. Hong Kong and Japan were particularly badly hit, with losses of 1.2% and 2.2% respectively.
In corporate news, Australia was in focus as the country’s earnings season progressed.
At the forefront was National Australia Bank, the country’s fourth-largest bank by market value, which fell 1.8% after reporting its first-quarter profit rose 11% on a decline in bad loans as well as an improvement in its U.K. banking business. The stock fell as investors focused on the bank’s weak income growth.
Shares in Insurance Australia Group rose 0.5% in Sydney as one of the country’s largest general insurers said that its half-year profit rose 39% due in part to cost cutting and more disciplined underwriting.
In other markets;
The Shanghai CSI 300 Index deducted 23.15 points, or 1%, to 2,264.29
Taiwan’s Taiex Index zoomed 77.24 points, or 0.9%, to 8,601.86
Singapore’s Straits Times Index reacquired 13.29 points, or 0.4%, to 3,099.93
Korea’s Kospi Index regained 27.26 points, or 1.4%, to 1,957.83.
The New Zealand Exchange 50 index recovered 17.81 points, or 0.4%, to 4,927.64
In Australia, the S&P/ASX 200 moved forward 26.36 points, or 0.5%, to 5,438.70
