Asian stocks closed mostly higher on Friday, buoyed by a record finish on Wall Street and the release of robust US consumer spending data, but gains in some markets were capped after another sharp fall in Shanghai.
The Chinese market was again hit hard amid fears the Shanghai benchmark had risen too far and too fast, resulting in a 4.03 percent tumble.
This dampened some regional markets which had risen sharply earlier in the day on the back of Wall Street, US economic data and a reassuring outlook on the US economy offered by the Federal Reserve earlier in the week.
Hong Kong rose 0.65 percent, while Tokyo was up 0.16 percent. Manila was up 0.74 percent and Jakarta gained 0.65 percent, while Wellington ended flat.
Elsewhere, Sydney, Mumbai and Singapore matched New York by closing at all-time highs, while Kuala Lumpur surged 1.66 percent to a 10-year high. Seoul was the standout with a 2.19 percent gain, while Bangkok jumped 2.07 percent.
Share prices closed 0.98 percent higher in expanded trade as investors took a lead from gains on Wall Street overnight, following the release of robust US consumer data.
Dealers said the upside, however, was capped by caution ahead of a string of holidays for the Lunar New Year later this month.
The weighted index closed up 75.49 points at 7,777.03 on turnover of NT$87.02 billion (US$2.64 billion).
"We managed a more forceful rebound today after a lackluster week," Jih Sun Securities Investment Consulting Co (
The market tried to gain further ground, but it was clear buyers refused to push prices much higher, aware that trading only had a week to go before the market closes for the holidays, he said.
Share prices hit a six-year high briefly on optimism toward company earnings and the US economy, but a flurry of profit-taking left the market only modestly higher by the close.
Dealers said the market posted its best finish for almost 10 months but gains were capped by caution ahead of monthly US jobs data due out later on Friday and another slew of corporate earnings reports.
The NIKKEI-225 index gained 27.61 points to 17,547.11.
"Market sentiment is strong, buoyed by the record high [on Wall Street Thursday]," said Hiroaki Hiwada, strategist at Toyo Securities.
In addition to upbeat US stocks, the market also received support from results.
Dealers said that while sentiment remained generally positive, helped by upward revisions to full-year earnings targets by companies such as Matsushita Electric Industrial, investors opted to wait for further incentives to buy.
Share prices closed up 0.65 percent, but off their highs, as Wall Street's overnight gains and robust US consumer data encouraged buying of property and financial stocks.
Dealers said the market came off its highs in late trade after mainland bourses suffered another big drop amid continued worries that China may impose new measures to cool its economy and markets.
PC maker Lenovo (
The Hang Seng Index closed up 133.52 points at 20,563.68.
"The Dow's strong performance overnight drove up the index, but the market had to give up some of the gains after the China markets closed sharply lower," said Conita Hung, research head at Delta Asia Securities.
The benchmark Shanghai Composite Index fell 4.03 percent amid worries over possible measures to rein in China's economy and the markets.
"The performance of the China markets is having an increasing impact on local stocks and is contributing to the [Hang Seng] index's volatility," Hung said.
Share prices closed sharply higher with sentiment underpinned by Wall Street's advance on robust consumer spending data.
Dealers said foreign investors' strong interest in blue chips pushed the benchmark index well above 1,400 points to its highest level in a month.
The KOSPI index ended up 30.24 points at 1,413.14.
"The market continued a Wall Street-driven relief rally, with many investors now looking to the positive side," Daewoo Securities analyst Lee Kyung-soo said.
Share prices closed sharply lower again, falling 4.03 percent on renewed institutional selling of banks and real estate developers.
Dealers said that financial and property stocks were heavily sold amid ongoing investor jitters that the market is overbought following a series of official warnings that sustained gains have put stocks at risk of a major correction.
At the same time, investors are also preparing to wind down positions ahead of the Lunar New Year in mid-February which could further pressure prices.
For the week, the key Shanghai Composite Index was down more than 7 percent, hit badly by comments from a senior government official that an advance of some 150 percent since the beginning of last year looked to be forming a bubble which could hurt investors if it burst.
The Shanghai Composite Index closed down 112.22 points at 2,673.21.
Share prices added 0.3 percent to reach a fresh record high on a solid lead from Wall Street and strong gains by resources giant BHP Billiton.
The SP/ASX 200 ended up 17.4 points at 5,831.5.
CMC Markets senior dealer James Foulsham said that BHP Billiton's strength helped counteract losses from rival resources giant Rio Tinto, which fell despite announcing a record US$7.44 billion profit after market close on Thursday.
Share prices rocketed 1.57 percent to fresh record peaks, powered by sharp gains in banking and property stocks. Dealers said they expect the gains to be sustained.
The Straits Times Index breached the 3,200-point level for the first time to close at a fresh record high of 3,217.68, up 49.58 points.
Share prices closed up 0.96 percent at a new record high led by hopes of sustained economic growth after India's central bank boosted its full-year growth forecast to 8.5-9.0.
Dealers said buying was hectic in telecom, capital goods and automobile companies.
The 30-share SENSEX index rose 136.59 points to 14,403.77.