Asian Shares Mixed; Nikkei Rallies On Weak Yen

(RTTNews) - Asian stocks ended mixed on Friday, with Japanese markets leading regional gains on yen weakness while Seoul stocks tumbled amid an ongoing political turmoil in the country.

Mainland Chinese and Hong Kong markets ended on a muted note after official data showed China's industrial profits dropped in November for a fourth straight month.

China's Shanghai Composite index finished marginally higher at 3,400.14 after a choppy session. Hong Kong's Hang Seng index ended flat with a negative bias at 20,090.46.

The World Bank has raised its forecast for China's economic growth in 2024 and 2025, but warned that weak household and business confidence, combined with headwinds in the property sector, will continue to undermine growth in the coming year.

Markets are still waiting for more clarity on Beijing's stimulus plans amid an apparent shift to a more proactive fiscal policy and a moderately loose monetary policy next year.

Japanese markets rallied as signs that the Bank of Japan may delay interest rate hikes amid Trump's tariff threats offset a stronger-than-expected Tokyo inflation reading.

Separate data released today showed Japan's industrial output fell for the first time in three months in November.

The Nikkei average jumped 1.80 percent to 40,281.16 while the broader Topix index settled 1.26 percent higher at 2,801.68.

The yen languished near a five-month low after Bank of Japan Governor avoided giving a clear signal on interest rates next month.

Toyota Motor rose 1.5 percent after the automaker announced an ambitious plan to double its return on equity to 20 percent by 2030. Honda Motor climbed 2.1 percent, while Nissan Motor slumped 7.8 percent. SoftBank Group, Sony and Fast Retailing rallied 2-3 percent.

Seoul stocks slumped as acting President faced an impeachment vote amid a political crisis sparked by the Constitutional Court's first hearing on President Yoon Suk Yeol's short-lived martial law.

The Kospi average fell 1.02 percent to 2,404.77, marking its third consecutive session of declines as the won-dollar exchange rate surpassed 1,480 won for the first time in over 15 years -raising concerns about capital outflows. Australian markets ended higher as trading resumed after the holiday break. The benchmark S&P/ASX 200 rose half a percent to 8,261.80 while the broader All Ordinaries index closed up 0.57 percent at 8,520.10. Buying was seen across sectors, with the exception of utilities and technology stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index jumped 1 percent to 13,205.10.

U.S. stocks ended mixed overnight as trading resumed following the Christmas holiday.

Retail sales came in above forecasts during a shorter holiday season while the number of jobless claims fell unexpectedly in the week ending Dec. 21, though continuing claims surged to a three-year high, separate set of data showed.

The Dow edged ended flat with a positive bias while the tech-heavy Nasdaq Composite and the S&P 500 both finished marginally lower.