By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asia stocks rose on Friday, although the strength of the gains varied between markets, ahead of jobs data that’s expected to provide some more clues about the health of the U.S. economy.
Hong Kong’s Hang Seng Index HK:HSI -0.26% climbed 0.2% to move back toward a level not seen since August 2011, while the Shanghai Composite index CN:000001 +1.60% jumped 1.1% to move further away from recent multi-year lows.
Japan’s Nikkei Stock Average JP:100000018 -0.19% slipped 0.2% but remained around seven-month highs, while South Korea's Kospi KR:SEU +0.40% rose 0.4% to mid-October levels while Australia’s S&P/ASX 200 index AU:XJO +0.94% advanced 0.9% to close at a seven-week high.
Setting the tone for a bright day in Asia — where all major markets are on track for weekly gains — U.S. shares recorded mild gains on Thursday.
The advance came after weekly U.S. jobless claims fell to their lowest level in a month, giving investors eyeing negotiations over tax hikes and spending cuts some reason for optimism over the economy. Read: U.S. stocks rise as cliff watch continues
U.S. jobs data is due out later in the global trading day Friday and economists surveyed by MarketWatch are expecting that the U.S. generated 80,000 jobs in November, down from an initial estimate of 171,000 in October, although the data will likely be clouded by the disruption caused by Hurricane Sandy. Read: How to read the Sandy-impacted jobs report
“Trading is likely to remain thin today as markets await the U.S. jobs report. The report will undoubtedly be soft but, as much of the impact will due to Hurricane Sandy, the market impact is likely to be muted leaving a likely constructive tone to risk appetite going into next week,” said Mitul Kotecha, strategist at Credit Agricole.
China shares gain
A positive trading debut by Chinese state-owned insurance giant People’s Insurance Company (Group) of China Ltd. HK:1339 0.00% , or PICC, helped the Hong Kong market to advance on Friday. PICC shares were trading at 3.74 Hong Kong dollars, up from its IPO price of HK$3.48 a share, in the largest IPO to take place in Hong Kong for around two years.
Prada SpA HK:1913 +10.08% shares surged 7.1% to an all time high after the Italian luxury products firm late Thursday reported third-quarter earnings that beat analyst estimates. Read: Prada 9-month net up 50%; demand strong
Commodity-sector firms were among other notable gainers in Hong Kong, as oil, gold, silver and copper futures advanced in electronic trading, as Aluminum Corp. of China Ltd. HK:2600 +2.10% ACH -1.46% jumped 2.7% while PetroChina Co. HK:857 +0.38% PTR +0.32% climbed 1.5%.
In mainland trading, cement firms were gaining, with Anhui Conch Cement Co. CN:600585 +1.61% up 1.7% and Fujian Cement Inc. CN:600802 +2.05% up 2.6% amid lingering optimism for ongoing government policies to support the Chinese economy. Read: China GDP 2013 growth seen at around 8%
Japan wobbles
Banks helped support the Japanese market on Friday, with heavyweight Sumitomo Mitsui Financial Group Inc. JP:8316 +1.84% SMFG +1.09% up 1.7% after the firm was upgraded to overweight from equalweight at Morgan Stanley.
The broker said that the lender appeared undervalued on a price-to-book basis and that the interest rate-sensitive stock should see upside amid rising rates.
Rival Mitsubishi UFJ Financial Group Inc. JP:8306 +1.32% MTU +0.44% climbed 1.3% while Nomura Holdings Inc. JP:8604 +1.15% NMR +1.45% advanced 0.6%.
Sharp Corp. JP:6753 +8.54% SHCAF +10.10% rallied 8%, extending steep gains from Thursday when an official at potential investor Hon Hai Precision Industry Co. TW:2317 +1.06% indicated talks between the firms were still on, according to reports. Hon Hai shares were up 1.1%.
Still, losses for telecom providers KDDI Corp. JP:9433 -2.97% KDDIY -1.51% and Softbank Corp. JP:9984 -2.12% SFTBY +1.87% weighed, with KDDI down 3% and Softbank shares down 2.2%.
In South Korean trading, technology firms were among the notable gainers, as Sk hynix Inc. KR:000660 +4.23% HXSCL 0.00% jumped 4% while Samsung Electronics Co. KR:005930 +1.79% SSNLF +8.00% rose 2.3%.
The Australian market got a lift, as selected dividend-focused companies added to weekly gains, with banking giant Commonwealth Bank of Australia AU:CBA +0.86% CBAUF +1.86% up 0.9% and blood-products group CSL Ltd. AU:CSL +2.47% higher by 2.5% after an upgrade to outperform from neutral at Credit Suisse.
Sarah Turner is MarketWatch's bureau chief in Sydney. Follow her on Twitter @SarahTurnerMKTW.
