Asian markets rallied Friday to end mostly higher for the week, as investors snapped up exporters as well as beaten-down financial stocks after strong economic data spurred a rally on Wall Street overnight.
The benchmark Nikkei 225 index closed up 304.62 points or 2.4% at 13,072.87, while the Hang Seng index closed up 289.6 points or 1.38 pct at 21,261.89
A moderate rise in Japan's industrial output and the first rise in housing starts in 13 months also supported sentiment. Industrial production climbed a seasonally adjusted 0.9% in July to 107.9 from 106.9 in June, the Ministry of Economy, Trade and Industry said.
Meanwhile, the Ministry of Land, Infrastructure and Transport said that the Japanese housing starts increased 19% year-over-year in July, after declining 16.7% in June. Economists were looking for a 15% rise in July. Construction orders received by big 50 contractors surged 42.3%, year-on-year, after falling 11.7% in June.
Among other data released today, Japan's core inflation rate surged to an annualized pace of 2.4% in July from 1.9% in the previous month on the back of soaring energy and raw material costs, while retail sales rose 1.9% in July from a year earlier as consumers paid more for fuel and food. The unemployment rate dipped to 4.0% in July from 4.1% in the previous month.
Among steelmakers, Nippon Steel surged 5.4%, JFE Holdings jumped 4.7%, Kobe Steel jumped 3.9% and Sumitomo Metal Industries advanced 3.4%. In the real estate sector, Mitsubishi Estate gained 4.3%, Mitsui Fudosan rose 3.6% and Sumitomo Realty & Development climbed 3.8%.
Among major financials, gainers included Mizuho Financial Group 4.0%, Mitsubishi UFJ Financial Group 3.6% and Sumitomo Mitsui Financial Group 4.2%.
Game maker Nintendo closed limit-up 8.4% after the company raised its group net profit forecast for this fiscal year ending March to 410 billion yen from 325 billion yen.
Retailers gained on the back of the report that retail sales rose in July. Fast Retailing gained 3.4%, Seven & I Holdings surged 4.6%, and Aeon advanced 2.3%.
The Chinese market closed higher, led by property stocks, on hopes that the government will announce new measures over the weekend to support the markets. The benchmark Shanghai Composite Index closed up 47.23 points or 2.01% at 2,397.37. The index posted a loss of 0.33% for the week and 13.63% for the month.
Top property developer China Vanke (SZA jumped 5.2% and China Merchants Property Development gained 4.9%.
Steelmakers rose after Baoshan Iron & Steel reported an 18% increase in first-half profit. Baosteel rose 3.8% and Shanxi Taigang Stainless Steel jumped 4.7%.
Brokerages continued their rally, with CITIC Securities advancing 2.7% and Pacific Securities surging by the 10% daily limit.
In the banking space, Bank of China climbed 1.4% after the bank reported a 42.8% jump in first-half net profit to 42.18 billion yuan. Ping An Insurance edged up 0.7%.
Elsewhere:
Taiwan's Taiex closed up 0.2% at 7,046.
Singapore's STI closed up 1.8% at 2,739.
Malaysia's KLCI closed up 2.8% at 1,100.
Indonesia's Jakarta Composite index closed up 1.0% at 2,165.
India's Sensex closed up 3.7% at 14,564.
Australia's S&P/ASX 200 rose 1.4% to 5,135.60.
New Zealand's NZX 50 index gained 0.9% to 3,358.73.
South Korea's Kospi ended flat at 1,474.24.
with files from other wire services
