Asian markets push higher on stimulus hopes after disappointing Chinese inflation data

Asian markets ended Friday trading on a brighter note after lacklustre Chinese inflation data fuelled hopes for more support from Beijing.

The Shanghai Composite shot up 1.9%, shrugging off a downbeat inflation report on stimulus hopes. The data showed subdued domestic demand and the depressed oil price remains a drag on Chinese inflation, pulling it well below the government's target.

China's consumer price index rose 1.4% year-on-year in March, the same rate as February. “Although inflation is likely to remain in positive territory, a further fall would be consistent with our forecast that the Chinese central bank will carry out additional policy easing this quarter partly in response to deflation fears,” said Capital Economics.

The Hang Seng surged more than 2% at the open, but quickly gave back its gains and straddled gains and losses for most of the session to end 1.2% higher.

Meanwhile, Japan's Nikkei 225 briefly touched a fresh 15-year high but relinquished gains to end just below the flat line as investors booked profits heading into the weekend.

Elsewhere in the region, Australia's S&P/ASX 200 ended up 0.61% after data showed the total number of home loan approvals rebounded 1.2% in February. South Korea’s Kospi Index gained 1.4% after Moody's lifted its outlook on the country's credit rating to positive from stable, though it left its Aa3 rating - the fourth-highest investment-grade rating - unchanged.

Moody's cited improving management of corporate debt, reduced vulnerability to global market turbulence and a good track record of fiscal prudence.