Investing.com– Most Asian stocks rose on Friday, buoyed by gains in Chinese stocks following robust economic data, while Japanese equities declined sharply on expectations of an interest rate hike next week.
Gains were limited as regional markets were cautious ahead of the U.S. President-elect Donald Trump’s inauguration due next week.
Trump has vowed to impose additional trade tariffs on Chinese exports, which is expected to result in a potential trade war, last seen during Trump’s previous term.
Some regional markets took cues from an overnight dip in Wall Street. US stock futures were also slightly lower in Asia hours on Thursday.
Chinese shares rise on strong GDP, manufacturing data
China’s Shanghai Shenzhen CSI 300 index rose 0.5%, and the Shanghai Composite index gained 0.4%. Hong Kong’s Hang Seng index inched 0.2% higher.
Chinese economy grew more than expected in the fourth quarter of 2024, bringing the annual gross domestic product (GDP) to 5%, which was in line with Beijing’s 5% growth target, data showed on Friday.
Other data showed that industrial production grew more than expected in December as recent stimulus measures from Beijing continued to support business activity.
December retail sales were also stronger than expected and accelerated sharply from the rise seen in the prior month.
Tracking gains in the world’s second-largest economy, other regional stocks were also higher.
The Philippines’ PSEi Composite index gained 0.5%, while Indonesia’s Jakarta Stock Exchange Composite Index rose 0.6%.
Japan’s interest rate decision looms
Japan’s Nikkei 225 fell more than 1% on Friday, while TOPIX declined 0.7%.
The market focus for next week will be on the Bank of Japan interest rate decision due on Jan 23-24, where expectations are of a rate hike.
BOJ Governor Kazuo Ueda said on Wednesday that a hike was possible if economic and price conditions continue to improve.
In corporate news, Japanese videogame giant Nintendo Co Ltd (TYO:7974) shares fell nearly 7% as investors appeared to be little enthused by the long-awaited reveal of Switch (NYSE:SWCH) 2.
In other regions, Australia’s S&P/ASX 200 inched 0.2% lower, while Singapore’s Straits Times Index gained 0.3%.
India’s Nifty 50 index fell 0.5% on Friday.
South Korea’s KOSPI index inched 0.2% lower, a day after the Bank of Korea maintained its policy interest rate at 3.00%, contrary to widespread expectations of a 25 basis point cut.