Asian Markets Largely Climbed Amid National Economic Data

 

Asian markets mostly rose on Friday (Dec. 27), with Japan leading the gains following the rising Tokyo CPI inflation data. The positive sentiment in Asia was unaffected by Wall Street's overnight subdued close.

 

Japan’s Nikkei 225 surged 1.80%, poised to end the week with a nearly 4% gain. The Tokyo consumer price index (CPI) inflation in December rose higher than expected due to increased price pressures. The growth fueled expectations of an interest rate hike by the Bank of Japan (BoJ). Some policymakers suggested that the rate hike should occur in the near term. Moreover, factory output data showed a slower-than-expected contraction in November due to sluggish foreign demand. The rally in Japanese stocks was also driven by outperforming auto stocks led by Toyota (TYO: 7203).

 

In China, markets closed mixed, with the Shanghai Composite index rising 0.06% and Hong Kong's Hang Seng index falling 0.4%. The official data released on Friday showed that the drop in China's Industrial profits decelerated, partially relaxing the struggling manufacturing sector. World Bank raised China's growth forecasts for 2024 and 2025 but warned of growth impediments in 2025. Investors anticipated more measures on Beijing's plans other than increased fiscal spending to stimulate the economy in 2025.

 

On the downside, South Korea’s KOSPI dropped 1.02%, marking its third consecutive day of losses. The political crisis added uncertainty to the market as the acting president had an impeachment vote on Friday.

 

Elsewhere, Australia’s ASX 200 rose 0.50%. As of press time, Singapore’s Straits Times Index gains 0.20%. FTSE Bursa Malaysia KLCI jumps 1.02%.