CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Friday following the mostly positive cues overnight from Wall Street amid upbeat corporate earnings results and on optimism about U.S.-China trade talks.
However, most of the markets have pared early gains and are now modestly higher after a private survey showed that China's manufacturing activity contracted more than expected in January, reinforcing fears of a slowdown in the world's second-largest economy. Investors are also cautious as they look ahead to the U.S. jobs data for January due later in the day.
The Australian market is modestly higher, reflecting gains by mining stocks on higher iron ore and copper prices. Data showing that Australia's manufacturing sector moved to expansion in January also boosted sentiment.
The benchmark S&P/ASX 200 Index is adding 7.40 points or 0.13 percent to 5,872.10, off a high of 5,881.60 earlier. The broader All Ordinaries Index is up 6.20 points or 0.10 percent to 5,943.50. Australian shares fell slightly on Thursday despite positive cues from offshore markets.
Among the major miners, BHP Group is advancing more than 1 percent, Fortescue Metals is adding almost 1 percent and Rio Tinto is up 0.3 percent.
The big four banks continued to trade weak ahead of the publication of the Kenneth Hayne royal commission recommendations on Monday. ANZ Banking, National Australia Bank and Westpac are lower in a range of 0.1 percent to 0.8 percent, while Commonwealth Bank is edging up 0.1 percent.
Oil stocks are also mostly lower after crude oil prices slipped overnight. Woodside Petroleum is declining 0.6 percent and Santos is losing more than 1 percent, while Oil Search is higher by 0.5 percent.
Gold miners are mixed even as gold prices extended gains overnight. Evolution Mining is lower by 0.5 percent, while Newcrest Mining is advancing more than 1 percent.
Private hospital operator Healthscope has agreed to be acquired by Canadian investment company Brookfield Asset Management for A$4.5 billion, despite rival bidders saying they could increase their offers. The company's shares are gaining almost 4 percent.
Ansell has agreed to acquire U.S.-based protective glove manufacturer Ringers Gloves for $70 million, saying that the acquisition is consistent with its growth strategy. However, Ansell's shares are down 0.2 percent.
On the economic front, the latest survey from the Australian Industry Group showed that the manufacturing sector in Australia moved to expansion in January, with a Performance of Manufacturing Index score of 52.5. That's up from the stagnation point of 50.0 in December; a reading above indicates expansion and below means contraction.
The Australian Bureau of Statistics said that final demand producer prices were up 0.5 percent on quarter in the fourth quarter of 2018, down from 0.8 percent in the three months prior. On a yearly basis, final demand producer prices advanced 2.0 percent, slowing from 2.1 percent in the third quarter.
In the currency market, the Australian dollar is higher against the U.S. dollar on Friday. The local currency was quoted at $0.7270, down from a high of $0.7269 on Thursday.
The Japanese market pared early gains and is now modestly higher. Investors digested data showing that Japan's manufacturing activity grew at its slowest pace in 29 months in January.
The benchmark Nikkei 225 Index is adding 31.03 points or 0.15 percent to 20,804.52, after touching a high of 20,929.63 earlier. Japanese shares rose sharply on Thursday.
The major exporters are mostly higher. Mitsubishi Electric is adding almost 2 percent, while Sony and Canon are advancing more than 1 percent each. Canon is down 0.4 percent.
In the tech sector, Advantest is rising more than 2 percent and Tokyo Electron is up 0.5 percent. Among the major automakers, Toyota is edging up 0.1 percent and Honda is flat.
In the banking space, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are declining almost 1 percent each. In the oil space, Japan Petroleum is up almost 1 percent, while Inpex is lower by 0.4 percent after crude oil prices declined overnight.
Among the major gainers, Taiyo Yuden is gaining almost 7 percent, Okuma Corp. is rising almost 5 percent and Astellas Pharma is higher by more than 4 percent.
On the flip side, Aozora Bank is losing more than 5 percent and Dena Co. is lower by almost 4 percent. Fukuoka Finanical Group and Shizuoka Bank are down almost 3 percent each.
In economic news, the latest survey from Nikkei revealed that the manufacturing sector in Japan continued to expand in January, albeit at a slower pace, with a manufacturing PMI score of 50.3. That's down from 52.6 in December, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
The Ministry of Internal Affairs and Communications said that the unemployment rate in Japan came in at a seasonally adjusted 2.4 percent in December. That was shy of expectations for 2.5 percent, which would have been unchanged from the November reading. The job-to-applicant ratio was 1.63, unchanged and in line with forecasts.
In the currency market, the U.S. dollar is trading in the upper 108 yen-range on Friday.
Elsewhere in Asia, Shanghai, South Korea, Singapore New Zealand and Indonesia are moderately higher, while Hong Kong is slightly lower. The markets in Malaysia and Taiwan are closed for Federal Territory Day and the Lunar New Year holidays, respectively.
On Wall Street, stocks closed mostly higher on Thursday on better-than-expected earnings results from a range of companies including Facebook and General Electric, while a steep drop by shares of chemical giant DowDuPont weighed on the Dow.
The Nasdaq surged up 98.66 points or 1.4 percent to 7,281.74 and the S&P 500 advanced 23.05 points or 0.9 percent to 2,704.10, while the Dow edged down 15.19 points or 0.1 percent to 24,999.67.
The major European markets turned in a mixed performance on Thursday. While the German DAX Index edged down by 0.1 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both rose by 0.4 percent.
Crude oil futures settled lower on Thursday, as traders chose to take some profits after recent gains. WTI crude for March ended down $0.44 or 0.8 percent at $53.79 a barrel on the New York Mercantile Exchange.
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