Asia stocks were mixed on Thursday, dragged by declines on the mainland, knocking the region's Christmas cheer before the holiday period.
Japanese stocks returned from holiday to dump 97.01 points, or 0.5%, the Nikkei 225 ending the day at 18,789.69
The Hang Seng index in Hong Kong gained 97.54 points, or 0.4%, to 22,138.13, with oil producers Petrochina, Sinopec and CNOOC leading gains by 2-3% each
News that the government approved a record $800-billion U.S. fiscal 2016 budget to boost growth was unable to lift sentiment.
Meanwhile, minutes from the Bank of Japan's November policy review confirmed the central bank's easing bias, with members saying more stimulus is warranted if inflation doesn't pick up.
Exporters lost ground as the yen strengthened 0.3% against the greenback; Sharp and Toyota Motor lost more than 1% each. Toshiba also fell 1% following an earlier 2% rally on news that India may sign a deal with its unit Westinghouse to build six nuclear reactors.
In Australia’s resource sector, miners BHP Billiton, Rio Tinto and Fortescue Metals added 4-5% each amid iron ore's recovery, while energy plays Oil Search jumped 3.7% and Beach Energy soared 9% respectively.
Banks also rallied; National Australia Bank, Australia New Zealand Banking, Commonwealth Bank of Australia and Westpac rose over 1 percent each.
Australia’s market was up for the seventh straight session and ended the week 2% higher.
South Korean shares reversed gains after hitting a three-week high earlier in the session.
Hyundai Motor ended flat after finally reaching a deal with its labour union that could avoid major production losses at its biggest manufacturing base. The agreement is subject to a vote by union members on Monday.
Sydney and Hong Kong had a half-day of trading on Thursday while Tokyo and Shanghai will be the only major Asian markets open on Friday.
CHINA
China extended losses after snapping a two-day rally on Wednesday.
The CSI 300 in Shanghai dropped 36.98 points, or 1%, to 3,829.40
Insurers were mixed after regulators issued tighter disclosure requirements for firms buying stakes in listed companies. China Life Insurance climbed 2% but Ping An Insurance eased 0.1%.
The yuan weakened to 6.4785 per dollar after the People's Bank of China said late on Wednesday that it will extend the currency's trading hours starting January 4. By doing so, trading in the Chinese forex market will overlap with European trading hours, which will boost Beijing's goal of internationalizing the currency.
In other markets
In Singapore, the Straits Times Index added 13.97 points, or 0.5%, to 2,877.62
The Kospi index in Korea gave back 8.57 points, or 0.4%, to 1,990.65
Taiwan’s Taiex index added 8.66 points, or 0.1%, to 8,324.36
In New Zealand, the NZX 50 jumped 30.19 points, or 0.5%, to 6,225.53
The ASX 200 climbed 65.82 points, or 1.3%, to 5,207.60
