Asian markets were mixed on Friday, with Japan’s Nikkei closing at a near 33-year high despite concerns over the slowing recovery of China’s economy. Hong Kong and Chinese stocks weighed down the region as worries about China’s growth crimped optimism surrounding US debt ceiling negotiations.
The Shanghai Composite Index closed 0.3 percent lower after data showed that industrial profits in October had fallen for a fourth straight month, while Hong Kong’s Hang Seng index slipped 0.4 percent due to weak corporate earnings reports from some of its major companies, such as Tencent Holdings Ltd and HSBC Holdings Plc, which reported losses or flat profits for their third-quarter results this week.
In contrast, Japan’s Nikkei 225 Stock Average rose 1% to close at 28,846 points – its highest level since 1990 – driven by strong domestic demand and an increase in foreign investor activity due to expectations regarding potential economic stimulus measures from the government following recent elections victories by Prime Minister Yoshihide Suga’s party coalition earlier this month.
Overall, Asian shares ended slightly lower but remained resilient amid signs that US lawmakers are moving closer to reaching an agreement on raising the nation’s borrowing limit before it runs out later this year.