Asian stocks markets on Friday registered strong gains for the day and week, with the Shanghai Composite notching its best weekly run in more than two years, extending on a rally seen overnight in Europe and the U.S.
Japan’s Nikkei NIK, +0.82% finished 0.8% higher, helped by more declines in the yen USDJPY, +0.21% during overseas trading. The index scored a weekly gain of 3.4% and logged its second straight weekly rise, marking its best two-week return, up 7%, since April 22, 2016, according to Dow Jones Market Data.
The rally comes ahead of three-day weekend, with the Nikkei closed on Monday for a holiday.
Friday’s gains were driven by insurers and metals companies, with Japan Post Insurance 7181, +2.16% closing 2.2% higher, while Pacific Metals 5541, +4.40% gained 4.4%, and Mitsui Mining & Smelting’s shares 5706, +5.91% jumped about 5.9%. Buoyed by the falling yen, export-heavy electronics companies such as Kyocera shares 6971, +3.89% rose 3.9% and shares of TDK Corp. 6762, +3.75% rose by 3.8%, though Sony 6758, -1.98% fell by about 2%
Hong Kong stocks extended their recent rebound, with the Hang Seng Index HSI, +1.73% climbing 1.7% after having climbed five of the prior six days to log a 2½-week closing high Thursday, and a weekly return of 2.5%. Financials performed well with shares of China Construction Bank 0939, +3.14% rising 3.1% and Ping An Insurance’s stock 2318, +1.74% adding 1.7%, and shares of AIA Group 1299, +2.96% picking up 3.5%. Tencent rose 0700, +3.15% by 3.2%. But CNOOC’s stock 0883, -3.68% dropped 3.7% amid an overnight pullback in oil prices.
Meanwhile, the Shanghai Composite SHCOMP, +2.50% advanced by 2.5%, contributing to a weekly rise of 4.3%. That weekly rise represented the best such stretch for the Shanghai on a percentage basis since March 18, 2016.
The smaller-cap Shenzhen Composite 399106, +1.77% finished the session up by 1.8% and booked a weekly gain of more than 3%.
Consumer plays, including tourism-related stocks, traded higher. ahead of coming holidays and the State Council’s latest paper on consumption. With solid profitability, steady cash flow and still-benign fundamentals, Galaxy Securities expects the food-and-beverage sector to continue outperforming the broader market.
Korea’s Kospi SEU, +0.68% advanced 0.7% for the day and 0.9% for the week, ahead of a weeklong holiday. Shares of Samsung Electronics Co. 005930, +0.32% added 0.3%, while those for SK Hynix 000660, -3.03% finished Friday’s session down 3%. Meanwhile, the Taiwan benchmark Y9999, +1.30% rose by 1.3% Friday and 1% for the week, the Singapore equity gauge STI, +1.17% finished 1.2% higher, contributing to its 1.8% weekly climb, while Malaysia’s index FBMKLCI, +0.38% edged 0.4% higher, for the day and week.
Down Under, Australia’s ASX 200 XJO, +0.41% rose 0.4%, and advanced 0.5% for the week, as mining giant Rio Tinto RIO, +1.78% gained after announcing a $3.2 billion share buyback plan, while New Zealand’s NSZ-50 NZ50GR, +0.16% rose by 0.2% Friday, capping a 1.1% rise for the week.
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