Asia report: Most markets rise, Nikkei records annual loss

Most markets in Asia finished in the green on Friday, but the major news was Japan’s stock market, which notched its first annual decline since 2011 on its last trading day of the year.

The Nikkei 225 was down 0.31% at 20,014.77, as the yen strengthened 0.59% against the dollar to last trade at JPY 110.33.

Tokyo’s broader Topix index was off 0.5% at 1,494.09, with both that and the benchmark suffering losses after a two-day winning streak.

It was the first annual loss in seven years for both indices.

In economic news out of the country, industrial output was down 1.1% month-on-month in November, with its unemployment rate rising to 2.5% from 2.4% in October, affecting sentiment to the downside.

Movements in Japan also came after the Bank of Japan released minutes from its December monetary policy meeting, in which it spoke of increasing risks to the country’s economic activity.

“Regarding the outlook for the global economy, risks have been tilted to the downside on the whole amid heightening uncertainties and a prevailing view that such situation will be protracted,” the central bank said.

On the mainland, the Shanghai Composite was up 0.44% at 2,493.90, and the smaller, technology-heavy Shenzhen Composite was 0.29% higher at 1,267.87.

South Korea’s Kospi made gains of 0.62% to 2,041.04, while the Hang Seng Index in Hong Kong eked out 0.1% to close at 25,504.20.

There was some post-Christmas concern for China’s technology sector and the ongoing trade spat between Washington and Beijing during the Asian session, amid reports that ZTE and Huawei could be banned in the US in the new year.

Reuters said that American telecoms providers could be barred from using equipment from the contentious Chinese technology firms under a national security executive order being considered by Donald Trump.

Oil prices were higher as the region went to bed for the weekend, with Brent crude last up 0.46% at $52.40 per barrel, and West Texas Intermediate adding 1.76% to $45.41.

In Australia, the S&P/ASX 200 was ahead 1.02% at 5,654.30, as most sectors saw gains, with the hefty financial subindex growing 2.34%.

Of the big four banks, Australia and New Zealand Banking Group was up 2.7%, Commonwealth Bank of Australia added 2.25%, National Australia Bank improved 2.66%, and Westpac Banking Corporation grew 2.98%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.1% higher on its last full trading day of the year, led higher by retirement property developer Summerset, which was ahead 3.4%.

The big Australasian banks were in the green on the Wellington bourse too, with Westpac Banking Corporation’s New Zealand shares up 2.1% and Australia and New Zealand Banking Group ahead 2.5%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.32% at AUD 1.4176, and the Kiwi advancing 0.07% to NZD 1.4916.