Investing.com — Asian stocks mostly rose on Friday, supported by gains in Chinese stocks after strong economic data, while Japanese shares fell sharply on expectations of an interest rate hike next week.
Gains were limited as regional markets were cautious ahead of the inauguration of US President-elect Donald Trump next week.
Trump has pledged to impose additional trade tariffs on Chinese exports, which is expected to lead to a potential trade war, last seen during Trump's previous term.
Some regional markets benefited from Wall Street's overnight decline. US stock futures were also slightly lower in Asian trading hours on Thursday.
Chinese stocks rise on strong GDP and manufacturing data
The Chinese index rose 0.5%, and the index gained 0.4%. The Hong Kong index rose 0.2%.
Data on Friday showed that the Chinese exceeded expectations in the fourth quarter of 2024, reaching 5% growth, which is in line with Beijing's 5% growth target.
Other data showed growth increased more than expected in December as recent stimulus measures from Beijing continue to support business activity.
December was also stronger than expected and accelerated sharply from the rise seen in the previous month.
Tracking gains in the world's second-largest economy, other regional stocks also rose.
The Philippines index rose 0.5%, while Indonesia rose 0.6%.
Japanese interest rate decision looms
Japan's index fell more than 1% on Friday, while it was down 0.7%.
The market's focus next week will be on the period from January 23 to 24, as expectations indicate a rise in interest rates.
Bank of Japan Governor Kazuo Ueda said on Wednesday that a rate hike is possible if economic conditions and prices continue to improve.
In corporate news, shares of Japanese video game giant Nintendo Co Ltd (TYO:) fell nearly 7% as investors seemed less than enthusiastic about the long-awaited reveal. Converts (New York Stock Exchange:) 2.
Elsewhere, Australia's index fell by 0.2%, while Singapore's index rose by 0.3%.
The Indian index fell 0.5% on Friday.
South Korea's index fell by 0.2%, a day after the Bank of Korea kept the rate at 3.00%, contrary to widespread expectations of a 25 basis point cut.
