Asian stocks concluded the week with varied performances on Friday, following commitments from Chinese leaders to implement further stimulus measures at the Central Economic Work Conference in Beijing, a key economic assembly where policy priorities for the upcoming year are established.
High-ranking officials pledged to enact rate reductions and lower bank reserve requirements to sustain economic growth and ensure the stability of employment and prices. However, the meeting did not provide detailed plans concerning fiscal stimulus and monetary easing.
Looking forward, investors anticipated next week's Federal Reserve meeting, with predictions favoring a 25-basis-point rate cut. In Asian trading, the dollar index remained stable, and oil and gold appeared set for weekly gains.
China's Shanghai Composite Index decreased by 2.01% to close at 3,391.88, while Hong Kong's Hang Seng Index dropped 2.09% to 19,971.24, as investors were left dissatisfied by the policy announcements from the notable economic conference.
Japanese markets experienced a significant downturn after a business survey suggested a slight improvement in manufacturers' outlooks, triggering discussions about a potential interest rate hike by the Bank of Japan next week. The Nikkei Average fell 0.95% to 39,470.44, following a two-month high in the previous session, while the broader Topix Index declined by 0.95% to 2,746.56.
Major firms like Fast Retailing and Tokyo Electron saw decreases of 2-3%, whereas Oji Holdings soared by 11.2% following news of a share buyback.
In South Korea, Seoul stocks were volatile but ultimately ended higher ahead of a second parliamentary impeachment motion against President Yoon Suk Yeol slated for the weekend. The Kospi Average advanced by half a percent to 2,494.46, marking its fourth consecutive session of gains.
Australian markets finished lower for the fourth consecutive day, with the mining sector leading the decline. The benchmark S&P/ASX 200 fell by 0.41% to 8,296, as investors reevaluated their expectations for a February interest-rate cut. Similarly, the All Ordinaries Index decreased by 0.43% to 8,550.30.
In contrast, New Zealand's benchmark S&P/NZX 50 Index rose by 0.48% to conclude at 12,754.26.
Meanwhile, on the other side of the globe, U.S. stocks closed lower overnight following substantial gains in the previous session. The Dow Jones Industrial Average decreased by half a percent, marking its sixth consecutive session of losses, as data showed that producer prices had risen at their fastest pace in five months as of November, and weekly jobless claims unexpectedly increased last week.
The annual growth rate of producer prices accelerated to 3.0% in November from an upwardly revised 2.6% in October, heightening concerns about the pace of potential rate cuts by the Federal Reserve early next year.
The technology-focused Nasdaq Composite decreased by 0.7%, while the S&P 500 shed half a percent in value.
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