Stocks in the U.S. rose overnight as investors set aside concerns over budget and debt-ceiling wrangling in Washington, sending the S&P 500 up 0.3% for its first positive close in six sessions after latest reports showed unemployment claims fell to their second lowest level in six years and the economy grew at a 2.5% annual rate in the second quarter.
Investor sentiments were also underpinned by data showing China's industrial profits climbed last month and Japan's inflation accelerated in August 2013 to the fastest pace since 2008.
The National Bureau of Statistics (NBS) said on Friday that profits among China's industrial firms jumped 24.2% YoY in August to 483.17 billion yuan. The growth compares with just 11.6% YoY in July. However, the NBS said profit from core businesses rose just 4% YoY in August, compared with 1.8% YoY in July. v For the first eight months, total profits among China's industrial firms rose 12.8% to 3.486 trillion yuan, compared with the 11.1% growth seen during the first seven months. Total revenue rose 10.9% to 64.51 trillion yuan and gross margins rose to 5.4% for the first eight months from 5.36% during the first seven months. Accounts receivables rose 12.9% YoY to 9.1642 trillion yuan at the end of August, compared with 8.9818 trillion yuan at the end of July. Stocks of finished goods rose to 3.19 trillion yuan at the end of August from 3.1674 trillion yuan at the end of July.
Japan's inflation accelerated to the fastest pace since 2008 in August on higher energy costs, underscoring pressure on Prime Minister Shinzo Abe to drive wage increases as he seeks to end 15 years of deflation. Consumer prices excluding fresh food increased 0.8% from a year earlier, the statistics bureau said today in Tokyo.
Among Asian bourses, Tokyo shares went lower, as a firmer yen against the greenback triggered profit taking. Meanwhile, caution ahead of Japanese data next week and a government decision on hiking the nation's sales tax also weighed down risk sentiments. The benchmark Nikkei 225 index declined 0.26% to 14,760.07, while the Topix index of all first-section shares lost 0.24% to 1,217.52.
The U.S. dollar traded at 98.55 yen against the Japanese currency, compared with 99.02 yen late Thursday in New York.
Prices of core goods across Japan rose last month at their fastest pace in almost five years, suggesting efforts to conquer years of growth-sapping deflation are taking hold. The consumer price index, which measures a basket of everyday goods, but excludes the volatile cost of fresh food, climbed 0.8% YoY in August 2013, the biggest monthly rise since November 2008 when they logged a 1% rise, according to the internal affairs ministry.
The inflation figures come ahead of the release of other key figures next week including factory output and household spending data while the Bank of Japan is set to release its closely watched Tankan business confidence survey.
Shares of shipping sector declined the most in Tokyo on profit taking following strong gain prior day. Kawasaki Kisen Kaisha shares dropped 0.8% to 236 yen and Nippon Yusen KK dipped 2.1% to 324 yen.
In Australia, Australian financial market rose for third day in row, sending the benchmark S&P/ASX200 higher by 0.24% at 5307.1 and broader All Ordinaries up by 0.27% to 5302.3, a fresh five-year closing high, with energy blue chips driving the way up. Meanwhile, shares of telecommunication, utilities and health care companies all posted gains, offsetting weak performances by the major banks and resources companies.
Shares of energy sector were solidly higher in Sydney as oil futures logged their first advance in six sessions overnight. Stock in Santos advanced 1.5% to A$15.66, and Oil Search rose 0.5% to A$8.86. Origin Energy added 1.3% to A$14.47 despite the competition watchdog taking legal action over the company's door-to-door sales practices.
Shares of precious-metal miners were biggest drag in the ASX, after bullion prices declined on Thursday amid continued uncertainty over the US Federal Reserve's stimulus outlook and weak demand. The Comex December futures price was down by $12.10 an ounce or 0.9% to $1,324.10 per ounce. Among bullion stocks, Newcrest Mining fell 3.5% to A$11.47, Perseus Mining 3.5% to A$0.545 and Kingsgate Consolidated 1.5% to A$1.69.
In China, Chinese share market closed slight higher in quiet and narrow trade, as advances by drug makers and technology companies countered declines in companies linked to the Shanghai free-trade zone. The Shanghai Composite Index rose 0.2% while the Shenzhen Composite Index jumped 0.37%, shaking off three-straight sessions of losses ahead of the long Golden Week holiday starting coming Tuesday.
Volume turnover was relatively thin in Shanghai market as many investors stayed cautious ahead of a major holiday and an announcement scheduled for Sunday that would outline details of a highly anticipated free trade zone in Shanghai. A weeklong holiday that starts on Tuesday was also expected to keep some investors on the sidelines.
Shares of Shanghai free-trade zone related companies declined for second day in row on profit taking amid concern recent gains were excessive. Shanghai International Port fell 9.6% to 5.64 yuan, extending yesterday's 10% down. Shanghai Material Trading closed 10% lower circuit at 15.75 yuan after falling by 10% previous day. Shanghai Jielong Industry Corp. dropped 8% to 9.31 yuan, extending yesterday's 10% down after saying in an exchange statement that the approval of the Shanghai free-trade zone will have no direct impact on the company's earnings in the short term.
In Hong Kong, HK stocks advanced, with the benchmark Hang Seng index higher by 0.35% to 23207.04. The benchmark index raised 215 points at one stage, boosted by the State Council's announcement of pilot policy for setting up the Free Trade Zone in Shanghai.
Among the 50 HK blue chips, 30 rose and 15 fell, with five stocks remaining steady. Tencent Holdings soared 2.2% to HK$417.80, while China Life Insurance Co fell 1.2% to HK$20.55, making themselves the top blue-chip gainer and loser. Other Chinese insurers were also lower. PICC declined 2.5% to HK$10.8. China Taiping dropped 1.7% to HK$11.32. CPIC weakened 0.5% to HK$28.35.
Hong Kong Monetary Authority announced today mortgage loans drawn down during August dropped 5.9% compared with July to HK$11.5 billion. Mortgage loans approved in August fell 8.5% compared with July to HK$14.5 billion.
In India, Indian benchmark indices fell down in late-afternoon trade on bouts of profit-booking mainly in banking, metals, power, consumer durable and FMCG stocks as RBI chief Raghuram Rajan's comments on inflation being still high were seen weighing on market sentiment. At 15:05 IST, the S&P BSE Sensex was down 184.36 points or 1% to 19,692.
Elsewhere, New Zealand's NZX50 rose 0.36%. South Korea's KOSPI climbed up 0.22%. Indonesia's JKSE Composite jumped 0.4%. Singapore's STI added 0.5%. Taiwan's Taiex added 0.56%. Malaysia's KLSE Composite grew 0.11%.
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