Asia report: Strong yen holds Japan markets back

Markets in Asia traded mostly higher on Friday, taking their lead from the US as oil prices hit their highest levels for a year. Japan was the odd one out, however, as a strong yen dragged on the markets.

In Japan, the Nikkei 225 extended its losses for another day, finishing down 1.25% at 16,724.81.

The yen was once again advancing on the US dollar after rocketing ahead on Thursday, before a suspected intervention from the Bank of Japan. It was last trading 0.07% ahead at JPY 111.31 per USD.

Japan's exporters were largely in the red, with Honda down 1%, Nissan losing 1.76% and Toyota sliding by 2.08%.

Electronics giant Toshiba was up 4.28%, despite announcing that its US units were under investigation over accounting issues. The conglomerate had been rocked by an accounting scandal last year, which led to its then-president Hisao Tanaka quitting.

In China, the Shanghai Composite Index gained 1.73% to close at 2,955.15. The smaller Shenzhen Composite Index rose 3.65% to 1,837.21, and the startup-heavy ChiNext was ahead by 4.34%.

Investors in the People's Republic looked to be betting on tech stocks, in a bid to cash in on Beijng's so-called internet economy. There was also speculation that the gains were down to rumours that some banks and brokers were going to relax rules on margin financing.

Early on Friday, the People's Bank of China guided renminbi 0.5% stronger to CNY 6.4628 per US dollar. It was the strongest shift since mid-December.

"The fix is coming in stronger than the markets had expected, and a gap move below 6.45 dollar-offshore yuan ensued. Today's yuan fixing plays into the notion that an imminent yuan devaluation is fading into the background," noted OANDA Asia Pacific senior trader Stephen Innes.

Energy plays in the country were mixed, with China Petroleum up 0.21%, Sinopec Shanghai Petrochemical gaining 0.15% and PetroChina losing 0.13%.

Investors in the country were also digesting data showing house prices rose 3.6% in the country in February - the largest rise since June 2014.

Hong Kong's Hang Seng Index was up by 0.82% to 20,671.63, while the Kospi in Seoul edged forward by 0.21% to 1,992.12.

Property stocks listed in Hong Kong were mixed, despite the good news from China. China Resources Land was up 0.97% and Shimao Property ahead 2.38%, while China Vanke dropped 1.71%.

Oil prices had jumped to their highest levels in 2016 during US trading as the dollar weakened, and discussions continued in advance of a meeting between OPEC and non-OPEC producers, including Russia, slated for April 17.

While serious gains in oil during US and Asia hours led the risers, prices were slipping after the region went to bed. Brent crude was last down 0.17% at $41.47 per barrel, and West Texas Intermediate lost 0.03% to $40.19.

Down under, the S&P/ASX 200 closed up 0.29% to 5,183.10. Materials and energy provided much of the market's steam, ahead by 1.67% and 0.77% respectively.

Among energy shares, Santos climbed 1.75% and Woodside Petroleum rose 1.69%, while Oil Search dipped 1.13%. Resource producers were also trading higher, with BHP Billiton up 4,68%, Fortescue Metals up 3.77% and Rio Tinto ahead by 0.96% in Sydney.

New Zealand shares hit a fresh record high after its recent 12-session golden run, with the S&P/NZX 50 rising 0.8% to 6,623.51.

An unknown investor looked to be making portfolio buys just minutes before the session closed, with 7.5% of subscription broadcaster Sky Network Television changing hands. Large parcels of other top 10 equities also traded, including electricity generator Meridian Energy, telco Spark New Zealand and casino operator SkyCity Entertainment.

Both down under dollars were slipping away from the greenback. The Aussie was last up 0.31% to AUD 1.3115, while the Kiwi had increased 0.7% to NZD 1.4698.