The Japanese stock market closed higher on Friday after starting off on a weak note. The Nikkei index posted its best weekly gain in a month though the U.S. markets were closed on Thursday for a holiday and despite a fresh deluge of disappointing domestic economic data. The benchmark Nikkei index gained 138.9 points or 1.2% to 8,512.3, its highest close in over a week, while the broader Topix index closed up 5.8 points or 0.7% at 834.8.
In the currency market, the U.S. dollar traded in the lower 95-yen levels in late Tokyo deals compared to the mid 95-yen range in early trade and lower 95-yen range late Thursday. The dollar was quoted at 95.27-95.30 yen.
Oil prices fell below $54 a barrel in Asian trading Friday, a day before an important OPEC meeting to be held in Cairo. New York's main futures contract, light sweet crude for January delivery, eased $0.57 to $53.87 a barrel by 2:37 a.m. ET. Oil closed at $54.44 a barrel on Wednesday in New York.
On the economic front, data released by the government for October showed that the unemployment rate fell to 3.7% from 4.0% in September, but the industrial production fell by a more-than-expected 3.1% from the previous month and household spending decreased 3.8% year-over-year compared to analysts' expectation for a 3.3% decline. Retail sales dropped 0.6% on month, while Japan's core CPI rose 1.9% from a year ago.
Shippers, trading houses and construction machinery companies extended their gains made a day earlier after China slashed interest rates by over 100 basis points on Wednesday to prop up growth, while negative sentiment generated by weak output data and the downward revision of forecast by Panasonic put a cap on the gains.
Panasonic plunged 10.9% after the company slashed its profit forecast for the current business year due to economic slump. However, Kyocera surged 17.3%, the most in more than three decades, on a plan to buy back up to 8 million shares or 4.22% of its total outstanding stock.
In the banking space, Mitsubishi UFJ Financial Group edged up 0.6%, Sumitomo Mitsui Financial Group added 2.1%, and Mizuho Financial Group advanced 0.7%.
Exporters were mixed, with Toyota Motor rising 1.7%, Komatsu jumping 6.9%, Canon losing 2.4%, and Sony declining 1.6%.
Trading houses rose on hopes that a better Chinese economy would boost commodities demand. Mitsui & Co jumped 8.3%, Itochu Corp gained 9.0%, and Marubeni Corp rose 7.7%. Oil and gas miner Inpex Holdings advanced 6.8%, Sumitomo Metal Mining soared 10.5%, and Nippon Mining Holdings rose 8.9%.
Shipper Nippon Yusen climbed 5.3%, Kawasaki Kisen advanced 5.2%, and Mitsui OSK lines moved up 6.1%.
For comments and feedback: editorial@rttnews.com