Asian markets struggled to gain traction, and bond yields in the region edged slightly higher. The yen turned volatile after Japan's inflation dropped to a 22-month low.
Stocks extended gains in Japan ahead of the inflation report, and China stocks resumed a downward slide on the persistent worries of a property market slump and waning confidence in the economic rebound.
Market indexes in China trimmed weekly gains after indexes turned lower and halted a weeklong rally after new home prices declined for the seventh month in a row. The Nifty index in India traded at a new high. Markets in Japan were closed for a holiday.
The Nikkei 225 surpassed the previous high set 34 years ago in 1989 amid strong interest from foreign investors and persistent weakness in the Japanese yen.
The People's Bank of China lowered its 5-year loan prime rate and offered more financing to developers. Market indexes in Shanghai, Hong Kong, Tokyo, Seoul, and Mumbai drifted lower on global interest rate uncertainty.
China-controlled funds stepped up market intervention and increased investment in exchange traded funds. Japan's trade gap shrank after exports rose and imports declined in January.
Asian markets lacked momentum, and the benchmark indexes in Tokyo struggled to advance. Market indexes in Shanghai staged a slight rebound after investors returned from a week-long holiday. India indexes lacked direction after the end of the earnings season last week.
The Nikkei index in Tokyo neared its all-time record high in 1989 as foreign investors continued to increase exposure. The Hang Seng index in Hong Kong rebounded after bargain hunters returned. The Sensex in Mumbai extended its weekly gain.
Benchmark indexes in Tokyo and Mumbai and the yen drifted to a new 35-year low. The Hang Seng index rebounded from morning losses, but property developers were among the leading decliners.
Japan's economy contracted in the fourth quarter after the weakness in private consumption and weak government spending overcame the strength in international trade. India's current account deficit is set to shrink further in the current fiscal year.
Benchmark indexes in Japan jumped 2% after investors returned from a three-day holiday. India indexes rebounded from morning weakness, and consumer price inflation eased in January.
Market indexes in India looked down, and investors prepared for a busy week of earnings and economic releases. Markets in Greater China, Japan, South Korea, Malaysia, and Singapore are closed for public holidays.
Hong Kong stocks extended losses to the third day ahead of the Lunar New Year holidays. The Nikkei index closed at a new 34-year high amid a surge in tech stocks. India indexes turned lower on mixed corporate earnings.
Japan's current account rose less than expected in December. China's producer price and consumer price inflation fell in January, extending a multi-month decline in a row. The Reserve Bank of India held its key lending rate steady.
The Reserve Bank of Australia held its key lending rate steady and reiterated its commitment to lower inflation to its target rate over the next two years. The Chinese sovereign wealth fund stepped up purchases of Chinese stocks to stabilize financial markets.
