Asia-Pacific Shares Mixed; Nikkei Closes Higher on Wall Street Gains; Tencent Drags Hang Seng Lower

The major Asia-Pacific stock indexes finished mixed on Friday with more winners than losers after Wall Street snapped a three-day losing streak on Thursday.

Japanese shares ended higher on Wall Street gains and stable U.S. interest rates. Hong Kong shares edged up as gains in the consumer sector offset Tencent losses. South Korea stocks ended lower on foreign selling, however, upbeat trade data limited declines. Financial and consumer firms dragged China shares lower and Australia shares extended gains with help from the technology sector and upbeat labor market data.

Cash Market Performance

Japan’s Nikkei 225 Index settled at 28317.83, up 219.58, up 0.78. Hong Kong’s Hang Seng Index finished at 28458.44, up 8.15 or +0.03% and South Korea’s KOSPI Index closed at 3156.42, down 5.86 or -0.19%.

In China, the benchmark Shanghai Index settled at 3486.56, down 20.39 or -0.58% and Australia’s S&P/ASX 200 Index finished at 7030.30, up 10.70 or -0.15%.

Japanese Shares Track Wall Street Higher as Stable US Rates Boost Sentiment

Japanese shares gained on Friday, as a strong finish on Wall Street overnight prompted investors to bet on cheap growth stocks, while stable U.S. interest rates also underpinned sentiment.

Hong Kong Shares Edge Up as Gains in Consumer Sector Offset Tencent Losses

Hong Kong equities ended firmer on Friday as demand for consumer discretionary and healthcare stocks helped offset selling pressure on communication firms, after lackluster results dragged Tencent shares lower.

Tencent, down 3.37%, led losses on the benchmark index, with Nomura trimming the Chinese gaming and social media giant’s price target after first-quarter core earnings slightly missed the brokerage’s expectations.

South Korea Stocks End Lower on Foreign Selling; Tech Shares, Upbeat Trade Limit Declines

South Korean shares ended lower on Friday, as foreigners turned net sellers, erasing earlier gains led by technology shares and upbeat exports data.

Foreigners were net sellers of 135.3 billion won ($120.08 million) worth of shares on the main board.

In economic news, data showed on Friday South Korean exports had surged 53.3% on-year during the first 20 days of May, helped by strong chip and car sales as well as higher demand from China and the United States.

Financial, Consumer Firms Drag China Shares Lower

China’s main share indexes ended lower on Friday, dragged down by financials and consumer staples, though the commodities sector rebounded from previous session’s slump as investors processed Beijing’s pledge to keep commodity prices in check.

Chinese commodity companies closed higher as analysts said China’s pledge to strengthen management to curb “unreasonable” increases in commodity prices are likely to have only a temporary effect.

Tech Rally, Upbeat Job Data Help Australia Shares Extend Gains

Australian shares extended gains on Friday, as investors lapped up risky assets following upbeat employment data, while local technology stocks tracked a rebound in Wall Street on signs of a pick-up in U.S. job growth this month.

Gains, however, were curbed by a 1.4% drop in the Australian mining index as iron ore slumped on China’s efforts to regulate the commodity markets. The mining index was headed for its worst week since mid-March.