However, gains across the regional bourses were limited on caution ahead of the Federal Open Market Committee's monetary policy decision next week. Risk sentiments were muted across the region after solid U.S. retail sales data Thursday fuelled speculation that the Federal Reserve could start reeling in its massive bond-purchase program by the end of the year.
Data showed retail sales rose more than forecast in November as Americans bought cars and took advantage of discounts going into the holiday-shopping season. Sales increased 0.7% in November from the previous month, the most since June, the Commerce Department figures showed. A separate report indicated applications for unemployment benefits jumped last week from an almost three-month low.
Data last week showed the U.S. jobless rate fell to a five-year low and the economy expanded in the third quarter at a rate faster than initially estimated.
Earlier this week, Federal Reserve officials hinted that the US central bank could announce a winding down of its stimulus program as early as next week. James Bullard, the president of the Fed's St Louis branch, said in a speech that a small taper of the $85 billion a month asset-purchase program might be a possibility as policymakers wrestle with how to respond to signs of improvement in the world's biggest economy.
Also, the US House of Representatives on Thursday passed the first bipartisan federal budget in four years, which would ease $63 billion in automatic spending cuts and avert another government shutdown. The legislation now heads to the Senate. The House voted 332-94 for the $1.01 trillion compromise budget crafted by Senator Patty Murray and Representative Paul Ryan, the chairman of a special bipartisan panel. President Barack Obama said he'll sign the final measure.
The stimulus has been credited with buoying global equity markets since it was introduced last September. The Federal Open Market Committee (FOMC) holds a two-day policy meeting on interest rates in the United States on 17-18 December 2013.
Among Asian bourses, shares on the Japanese financial market were higher for the first time in four sessions, with the benchmark Nikkei Stocks Average rising 61.29 points to finish at 15403.11, on the back of yen depreciation against the greenback and on tracking futures led buying.
Following the expiration of December futures, participation levels rose to multi-month highs. The March Nikkei 225 futures contract closed up 0.7%.
The yen tumbled to a five-year low against the dollar and euro. On currency markets, the dollar rose as high as 103.92 yen in Tokyo afternoon trade from 103.36 yen in New York on Thursday, while the euro hit 142.82 yen compared with 142.15 yenboth at highs not seen since October 2008.
Export related stocks were sharp higher in Tokyo, bolstered by the yen weakening against the U.S. dollar and the euro. A weaker yen helps makes them more competitive overseas and inflates repatriated earnings.
Olympus Corp rose 1.09%, Hitachi Construction Machierny Co 1.59%, Tokyo Electron 2.24% and Mazda Motor Corp 2.08%. Among the retailers, Fast Retailing Co gained 2.42%, possibly helped by the U.S. retail numbers, but FamilyMart Co fell 0.98% as the Nikkei Asian Review said the firm would post a mild 1% gain in nine-month operating profit through November.
Disappointing earnings from Tokyo Dome Corp. sent its shares down 2.3%, while Asahi Group Holdings rose 2.5% following a Reuters report that it plans to launch a premium version of its Super Dry beer in Japan to take advantage of a growing market for upmarket brands.
Asahi Group Holdings rose 2.5% after JPMorgan raised its price target to Y3,390 from Y2,830 while maintaining its "Overweight" rating on the expectations for improved margins following the drink maker's announcement of a new sales strategy for its premium products.
In Australia, the Australian share market snapped its longest losing streak in 17 months today, rising for the first time in seven sessions despite a weak offshore lead. Reserve Bank of Australia Governor Glenn Stevens signalled a weaker local currency is preferable to lower interest rates to help spur the nation's economy.
The All Ordinaries Index (XAO) added 32.3 points or 0.6% to 5101.5 after being as low as 5053.1. Local shares fell over the past week as speculation mounted the US Federal Reserve might start to cut stimulus next week.
Australian banks and financials shares were up on bargain buying after falling in recent sessions, with Commonwealth Bank gaining 0.9% to A$74.20, Westpac Bank 0.6% to A$31 and National Australia Bank 0.9% to A$33.35. Australia & New Zealand Banking Group fell 0.3% to A$30.25. QBE Insurance (QBE) had a better day, rising 1.9% to A$10.60. However QBE shares fell 31.4% over the course of the week following Monday's shock profit warning.
Shares of energy sectors were up, with Woodside Petroleum gaining 1.5% to A$37.75, as the company said a planned investment in Israel's Leviathan liquefied natural gas project may not proceed but it has other growth options. Origin Energy added 1.1% to A$13.13.
Shares of mining and resources companies were mixed, with BHP Billiton adding 0.9% to A$35.85 as plans to cut costs in its iron ore division and a revamped petroleum strategy being mostly well received. Rio Tinto fell 0.1% to A$65.09.
Crown Resorts dropped 4.3% to A$ 15.90 following the news of a Victorian government to extract more tax from the casino operator.
In China, the China share market declined for a fourth day in row, amid concerns over a short-term liquidity squeeze and a potential economic slowdown amid China's structural reforms. The Shanghai Composite fell 6.72 points to finish at 2196.07, while the CSI 300 Index dropped 3.38 points to close at 2406.64.
Investors' wariness over liquidity squeeze arose as the People's Bank of China suspended this week's open market operations, the first week it has done so since the end of October. The bank didn't add funding via 14-day reverse repos on Thursday, following the surprise suspension of an injection via seven-day instruments on Tuesday. The suspension resulted in a net drain of CNY37 billion this week versus last week's net removal of CNY47 billion.
Meanwhile, risk aversion selling also flared amid speculation Chinese government may cut growth targets at an economic policy meeting this week. Dariusz Kowalczyk, senior economist at Credit Agricole Corporate and Investment Bank, said in a report that the central economic work conference may unveil a cut in economic growth to 7% in 2014 from 7.5% this year, which would be seen as negative.
China may keep a proactive fiscal policy and prudent monetary policy next year and rely on fine-tuning, the Economic Information Daily reported today. The government may cut its 2014 growth target to 7% from 7.5%, the same newspaper said Dec. 4.
Shares of energy and telecommunication companies declined the most in SSE index on profit taking. China Oilfield, the drilling unit of the nation's largest offshore oil producer, slid 3.4% to 23 yuan. ZTE, China's second-biggest phone-equipment maker, slid 1% to 14.91 yuan. Guanghui Energy Co. dropped 2.4% to 9.49 yuan. China United Network Communications Ltd., which controls the nation's second-largest cell phone operator, sank 0.9% to 3.33 yuan.
Shares of shipping companies rose after sharp rally in the shipping freight index on Thursday. The Baltic Dry Index climbed 1.7% yesterday to its highest level since November 2011. Cosco Shipping added 1.3% to 3.94 yuan. China Shipping Development Co, a unit of the second-biggest sea-cargo group, rose 4.5% to 5.32 yuan.
Shares of consumer-discretionary companies rose, with Gree Electric jumping 5.2% to 34.29 yuan, a record close. Midea Group Co., which makes household appliances, added 1.7% to 50.15 yuan.
In Hong Kong, shares in the Hong Kong market closed higher for the first time in four sessions despite a weak offshore lead. The benchmark index opened 138 points lower following the weaker tone of overseas markets, but it recovered its losses and moved up to 23,331 at one stage. The Hang Seng Index ended up 27 points to 23,245.
Among the HK 50 blue chips, 26 rose and 23 fell, with 1 stock remaining steady. Hengan (01044) was the biggest blue-chip loser on CICC's downgrade, falling 4.8% to HK$91.25. Galaxy (00027) added 3% to HK$37.15, making itself the top blue-chip winner. Sands China (01928) also gained 0.6% to HK$62.65.
Market heavyweights were firmer. HSBC (00005) edged up 0.1% to HK$82.6, while China Mobile (00941) nudged up 0.4% to HK$81.3. Elsewhere, Xinyi Glass (00868) added 1.4% to HK$7.31, while Xinyi Solar (00968) soared 24.6% to HK$1.42. Both companies have issued positive profit alerts. Comba (02342) soared 5.5% to HK$2.69 after the company said it got more than 150,000 4G antenna orders this year.
Shares in China Cinda Asset Management Co. rose 4.44% to HK$4.70 on its second trading day after completing the largest initial public offering in Hong Kong in 2013. The company, which buys bad debt from banks and companies, raised $2.5 billion, and jumped 26% on its debut on Thursday. Kim Eng Securities citing news the carrier would add 6,700 flights to handle the Chinese New Year travel rush. Market new comer China Cinda (01359) shined. It soared to HK$4.5, or 25.7% above its IPO price on Thursday.
In economic news, The Hong Kong Monetary Authority announced today foreign assets, representing the external assets of the Exchange Fund, decreased during the month by HK$5.5 billion to HK$2,559.7 billion at the end of November. The Monetary Base, comprising Certificates of Indebtedness, Government issued currency notes and coins in circulation, the Aggregate Balance and Exchange Fund Bills and Notes issued, amounted to HK$1,245.5 billion. Claims on the private sector in Hong Kong amounted to HK$186.3 billion. Foreign liabilities, representing fees payable to the Exchange Fund's external managers, amounted to HK$600 million.
In India, Indian benchmark indices ended last trading session of the week on sour note, as a sharp uptick in consumer price inflation in November 2013 raised the likelihood of the Reserve Bank of India (RBI) hiking its main lending rate viz. the repo rate at a monetary policy review next week. The rupee fell and bonds yields rose after retail inflation spiked, raising bets of a rate hike at the RBI's policy meeting next week. The barometer index, the S&P BSE Sensex, was provisionally down 191.08 points or 0.91%, up close to 40 points from the day's low and off about 130 points from the day's high.
Bank stocks declined as a sharp uptick consumer price inflation raised the likelihood of the Reserve Bank of India (RBI) hiking its main lending rate viz. the repo rate at a monetary policy review next week. Capital goods pivotals declined as higher interest rates could put spanner in the works for a likely revival of investment cycle. Shares of two wheeler makers declined.
Provisional annual inflation rate based on all India general consumer price index (CPI) (combined) rose 11.24% in November 2013 as compared to 10.17% (final) in October 2013. The data was announced after market hours on Thursday, 12 December 2013.
Index of industrial production (IIP) declined 1.8% in October 2013, against 2% growth in the previous month September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in IIP for October 2013. Meanwhile, the marginal 1.3% growth in the electricity generation restricted further dip in industrial production during October 2013.
Syndicate Bank fell 2.35% to Rs 87.40. The bank after market hours on Thursday, 12 December 2013, said it has fixed minimum issue price at Rs 88.36 per share for the proposed issue of 2.26 crore equity shares of face value of Rs 10 each aggregating to Rs 200 crore to Government of India (GoI) by way of preferential allotment basis. The bank will hold an Extraordinary General Meeting of the shareholders on 10 January 2014. The Government of India (GoI) currently holds 66.17% stake in Syndicate Bank (as per the shareholding pattern as on 30 September 2013).
State-run Oriental Bank of Commerce declined 2.93% to Rs 209. The bank today, 13 December 2013, said that the bank has allotted 80.87 lakh equity shares at issue price (including premium) of Rs 185.47 per share aggregating about Rs 150 crore to Government of India on preferential basis. As a result, the Government of India's holding in the bank has increased to 59.13% from 58%.
Aurobindo Pharma rose 3.99% after the company said it has received the final approval from USFDA to manufacture and market Duloxetine Hydrochloride Delayed-Release Capsules in 3 strengths in the United States. The announcement was made during trading hours today, 13 December 2013.
Elsewhere in the region, South Korea's KOSPI fell 0.26%. New Zealand's NZX50 index rose 0.19%. Taiwan's Taiex index rose 0.19%. Singapore's Straits Times index added 0.23%. Malaysia's KLSE Composite rose 0.35%. Indonesia's Jakarta Composite index fell 0.89%.
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