Market indexes in Japan extended gains, but in Shanghai and Hong Kong they diverged after the release of weak manufacturing data ahead of the policymakers annual gathering next week. India's economic growth accelerated to a six-quarter high.
Markets in Asia generally traded down amid cautious trading in Japan, China, and India. Industrial output declined for the third month in a row, and retail sales rose for the 23rd month in Japan. Hong Kong Exchanges reported higher annual income and hiked its annual dividend.
Benchmark indexes in Asia traded lower amid cautious trading ahead of the release of U.S. inflation data. Hong Kong removed decade-old property curbs to revive the ailing property market.
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.
