Asia: Mixed results as oil prices continue to fall

Asian stocks extended mixed results on Friday, on the back of diverse reactions to the persistent fall in oil prices.

Japan’s Nikkei 225 was up for the first time in three days, showing 0.66% growth. As the world’s third largest oil consumer, the commodity’s falling price has helped consolidate investor gains in Japan’s index. Growth during Friday's trading was further supported by a stronger dollar, which climbed to a 119.6 high against the Yen on the back of higher US retail sale results in November.

Shares in Canon jumped almost 5% as the firm announced growth in both profit and dividends. Troubled Japanese budget airline Skymark grew 1.98% on Friday, after surging 32% over the past two days on the back of hopes for a possible cash injection by investment funds.

Meanwhile, oil firms extended their losses in the Hang Seng after the price of crude oil fell below $60 per barrel for the first time in five years. Oil firms Kunlun Energy and CN Resources Power represented two of Hong Kong’s biggest fallers, as the index inched down 0.27%.

Chief market analyst at CMC, Ric Spooner, said: "Investors faced a mixed bag this morning. Overnight news of strong US retail sales adds to a consolidating picture of improving growth in the world's largest economy.

"However, another slide in oil prices and caution ahead of monthly data on China's economy is likely to keep investors cautious about the materials stocks and the energy sector in particular."

Shanghai’s index rose higher by 0.42%, capping a fifth week of gains for the benchmark index. Chinese industrial production increased at its lowest levels in three months, stirring speculation that the government will take further action to boost its flagging economy.

The assumptions were reinforced after China’s central bank announced on Friday the issue of ¥852.7bn of new yuan loans in November, up from ¥548bn in October. Economists had forecast an expected issue of ¥650bn newly extended loans.