Asian stock markets presented a mixed performance on Friday, amidst optimism that China will fulfill its promises to stimulate economic growth in the upcoming year.
China's central bank is anticipated to reduce interest rates from the current 1.5 percent "at an appropriate time" in 2025, according to a report by the Financial Times, as part of efforts to boost credit demand.
In currency markets, the dollar remained steady near two-year highs during Asian trading. This stability is attributed to expectations of prolonged high U.S. interest rates and concerns over potential tariffs from the incoming Trump administration.
Gold prices experienced a slight dip due to profit-taking activities, following a 1-percent increase in the previous session driven by heightened demand for safe-haven assets.
Oil prices remained relatively unchanged after a significant surge to a two-month high the previous day, spurred by optimism regarding economic growth in China and indications of declining U.S. crude inventories.
In China, the Shanghai Composite index decreased by 1.57 percent, closing at 3,211.43, as investors prepared for potential economic challenges in 2025. Additionally, trade tensions intensified as China declared the implementation of export control measures targeting 28 U.S. entities, which also impacted market sentiment.
In Hong Kong, the Hang Seng index increased by 0.70 percent to conclude the session at 19,760.27, after retreating from some initial gains.
Japanese markets were closed due to a public holiday. Meanwhile, in South Korea, the stock market advanced primarily due to positive developments within the tech sector, which helped investors overlook ongoing political uncertainty in the country.
The Kospi index rose by 1.79 percent to 2,441.92, despite earlier in the day, investigators from the corruption watchdog initiating an arrest of impeached President Yoon Suk Yeol over martial law charges.
Shares of SK Hynix surged by 6.3 percent following the memory giant's announcement that it will showcase its AI memory technologies at the CES 2025 event scheduled in Las Vegas from January 7-10.
Australian markets closed higher, buoyed by gains in financial and energy stocks. The benchmark S&P/ASX 200 climbed 0.60 percent to 8,250.50, while the broader All Ordinaries index ended the day slightly higher, up 0.55 percent, at 8,511.90.
In New Zealand, the S&P/NZX-50 index declined by 0.33 percent to 13,067.83, amid concerns that U.S. President-elect Donald Trump's tariff policies could potentially lead to inflation.
Reflecting global market jitters, U.S. equities fluctuated before closing lower, with the dollar ascending to a two-year high following data that indicated an unexpected drop in weekly jobless claims to an eight-month low, intensifying fears about enduring high interest rates.
U.S. market sentiment was further dented by Tesla's annual sales decline, coupled with reports suggesting substantial discounts on Apple's latest phones in China.
The Nasdaq Composite and the S&P 500 both fell approximately 0.2 percent, marking their fifth consecutive daily decline, the longest streak since April. Additionally, the Dow Jones Industrial Average dropped by 0.4 percent.
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