CANBERA (dpa-AFX) - Asian stocks ended mostly higher on Friday after the U.S. Senate adopted a fiscal 2018 budget resolution Thursday, a step forward towards overhauling the U.S. tax code.
Overall gains remained muted somewhat as investors awaited the outcome of Sunday's Japanese general election and China's central bank governor, Zhou Xiaochuan, warned that excessive optimism could lead to a 'Minsky moment.'
The U.S. dollar weakened against its rivals after media reports suggested that President Donald Trump is leaning toward nominating Federal Reserve governor Jerome Powell to succeed Janet Yellen.
Investors also kept an eye on political tensions in Spain as a deadline set by Madrid for a final decision on independence approaches.
Japanese shares rose for the 14th straight session to post their longest winning streak since January 1961 as the yen remained weak on hopes that Prime Minister Shinzo Abe's ruling coalition will win Sunday's general election.
The Nikkei average closed marginally higher at 21,457.64 while gaining 1.4 percent for the week to post its sixth straight weekly gain. The broader Topix also ended little changed with a positive bias.
While exporters ended mixed, suppliers to Apple like Murata Manufacturing and Alps Electric fell about 2 percent on signs of weak demand for Apple's iPhone 8 models.
Chinese shares rose slightly but ended the week lower on concerns over slowing growth. The benchmark Shanghai Composite inched up 8.48 points or 0.25 percent to 3,378.65 but ended the week down about 0.4 percent.
Hong Kong's Hang Seng index was up 1.2 percent at 28,493 in late trade. Hong Kong's jobless rate stood at 3.1 percent in the July to September period, the same rate as seen in three months to August, the Census and Statistics Department reported.
Australian shares eked out modest gains after the U.S. Senate passed a budget vote that lawmakers expect will pave the way for introducing a tax reform Bill.
The benchmark S&P/ASX 200 rose 10.90 points or 0.18 percent to close above 5,900 for the first time since May while the broader All Ordinaries index finished 0.15 percent higher at 5,968.60.
National Australia Bank edged up 0.3 percent and Commonwealth Bank added 0.3 percent as their chief executives face a parliamentary inquiry. Mining giant BHP Billiton rose half a percent and smaller rival Fortescue Metals Group rallied 1.7 percent despite iron ore prices falling overnight.
Vocus Group soared as much as 6.8 percent ahead of its investor day on Monday. Homewares retailer Adairs lost 2.2 percent after it was fined $66000 fine for alleged disclosure breach. Energy stocks finished flat to slightly lower after oil prices fell over 1 percent overnight to snap a four-day winning streak.
Seoul stocks hit fresh record highs as investors lapped up technology stocks such as Samsung Electronics and SK Hynix on expectations of improved earnings.
Utility stocks also gained ground following a proposal by a state commission to push ahead with the construction of two new nuclear reactors. The benchmark Kospi climbed 16.48 points or 0.67 percent to finish at 2,489.54.
New Zealand shares finished marginally higher and the kiwi dollar hit five-month lows after the nationalist New Zealand First Party agreed to form a new government with centre-left Labour Party.
Malaysia's KLSE Composite index was marginally lower after official data showed the country's consumer inflation climbed an annual 4.3 percent in September, faster than the 3.7 percent rise seen in August.
Indian markets were closed for a public holiday. Singapore's Straits Times index was rising 0.1 percent and Indonesia's Jakarta Composite index was adding 0.6 percent while the Taiwan Weighted dropped 0.3 percent.
U.S. stocks ended mixed overnight, with concerns over rising corporate debt in China, global political uncertainty and mixed earnings news weighing on markets.
The Dow and the S&P 500 rose marginally to reach fresh record closing highs after the release of encouraging jobless claims and regional manufacturing data. The tech-heavy Nasdaq Composite dropped 0.3 percent.
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