CANBERA (dpa-AFX) - Most Asian stocks rose in thin holiday trading Friday, as encouraging U.S. employment data and a better-than-expected reading on consumer confidence eclipsed concerns over Europe's unresolved debt crisis.
With the U.S. beginning to show signs of economic recovery and commodities edging higher, the revival in risk appetite helped investors to shrug off the downward revision in third-quarter U.S. GDP growth. The Japanese market was closed for the Emperor's Birthday national holiday.
China's Shanghai Composite rose 0.9 percent, closing just above 2,200 points after a report said China's central bank may continue cutting banks' required reserve ratio to counter growing capital outflows from the country. Also, a quarterly survey published by the People's Bank of China yesterday showed that China's commercial banks anticipate a looser monetary policy in the first three months of next year as economic growth slows and inflationary pressures ease.
Hong Kong's Hang Seng index advanced 1.4 percent in thin holiday trading as signs of a strengthening U.S. job market improved global risk appetite.
Australian shares rose sharply in a holiday-shortened trading, with benchmark S&P/ASX 200 and the broader All Ordinaries rising around 1.2 percent each, as investors cheered the positive U.S. data released overnight. Global miner BHP Billiton ended 1.4 percent higher, Rio Tinto rose 2 percent and smaller rival Fortescue edged up 0.7 percent.
Gloucester Coal jumped 22 percent after the company said its largest shareholder, Noble Group, will accept a A$2.2 billion reverse takeover by China's Yanzhou Coal Mining. Murchison Metals soared 9 percent as the group settled an ongoing litigation with Chameleon Mining.
Oil and gas producer Santos edged down 0.2 percent after the company sourced US$1.2 billion in finance from export credit agencies for its Gladstone liquefied natural gas project in Queensland. Woodside closed 1.4 percent higher and Oil Search added a percent.
The retail sector ended mixed while the big four banks closed up between 0.9 percent and 1.5 percent. Qantas rose a little over two percent after the airline reported a rise in overall passenger numbers in November.
South Korea's Kospi average rose 1.1 percent, as upbeat U.S. data encouraged investors to go bargain hunting in economy-sensitive shipbuilding shares. Samsung Heavy Industries, Hyundai Heavy and Daewoo Shipbuilding rose 2-3 percent. Hyundai Motor, the nation's largest automaker, rose 0.7 percent and steel maker POSCO gained half a percent.
Hynix Semiconductor rose 2.6 percent after SK Group chairman Chey Tae-won visited a Hynix plant and pledged support to develop the company into 'SK's new axis of growth.' Other tech shares such as Samsung Electronics and LG Display LCD rose around 2 percent each, but LG Electronics slid 0.8 percent.
Oil refiner S-Oil rose 2.9 percent and SK Innovation closed 1.7 percent higher as crude prices neared the $100 a barrel mark. LG Chem rallied 4.4 percent on saying that it had no plans to spin off its battery business.
New Zealand's NZX 50 index rose 0.3 percent on the last day of pre-Christmas trade punctuated by two strong earthquakes in the country's second-largest city Christchurch. The latest quakes sparked speculation that the Reserve Bank of New Zealand might cut interest rates, though many participants said it delays the central bank going into hiking rates.
Kathmandu Holdings, which plunged more than 25 percent yesterday, rallied almost 5 percent, while Heartland New Zealand, the would-be bank, jumped 6.5 percent, Rakon advanced 4.3 percent, Restaurant Brands gained 3.5 percent, Nuplex added 3.2 percent and Fisher & Paykel Appliances rose 3 percent. Rural services firm PGG Wrightson paced the declines, falling 5 percent, insurer Tower lost 3.2 percent and gold miner OceanaGold closed 1.8 percent lower.
Elsewhere, Singapore's Straits Times index was up 0.4 percent and the Taiwan Weighted average gained 2.1 percent. Indian's Sensex was down half a percent, as investors locked in gains recorded in the previous two sessions.
On Wall Street, stocks posted modest gains overnight, with markets getting a boost from news that U.S. consumer sentiment improved by much more than previously estimated in December, while initial jobless claims fell to their lowest level in well over three years in the week ended December 17th.
A separate report from the Commerce Department showing a downward revision to the pace of third quarter GDP growth helped to limit the upside for the markets, as traders looked to square up positions before the start of the Christmas holidays. The Dow rose half a percent, while the Nasdaq and the S&P 500 advanced around 0.8 percent each.
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