Asian shares mixed, China leads gains on stimulus hopes

Asian stocks ended mixed on Friday, with a stronger yen amid Bank of Japan (BOJ) rate hike bets weighing on Japanese markets while Chinese stocks logged strong gains on stimulus expectations, heading into a key economic meeting next month.

The Japanese yen briefly breached the key level of 150 against the US dollar after core inflation in the capital region came in above the two per cent target, boosting expectations for an interest rate hike in the near-term.

On the contrary, Japanese industrial production and retail sales registered weaker-than-expected growth in November.

Traders now see a 60 per cent chance that the BOJ could hike interest rates again in December, having been undecided before the data. A strengthening economy and concerns over the depreciating yen have recently added to the urgency for the BOJ to act.

"We note that the acceleration in inflation, combined with the solid recovery in monthly activity, increases the odds of another BoJ rate hike in December," said analysts at ING in a note.

"With the US closed for Thanksgiving yesterday, and many market participants likely extending the holiday to the weekend, there isn't too much action in financial markets to talk about."

The dollar fell alongside yields, helping gold prices push higher by nearly one per cent in Asian trade.

Oil prices drifted lower after OPEC+ announced a postponement of its highly anticipated meeting to discuss production strategies.

China's Shanghai Composite index rallied 0.93 per cent to 3,326.46 amid speculation that Beijing will provide more support for the economy at a key policy meeting in December.

Also, in a significant move, Beijing said it will extend tariff exemptions for the import of some US products until February 28, 2025, signifying a potential easing in trade barriers amid US trade tensions. Hong Kong's Hang Seng index edged up by 0.29 per cent to 19,423.61 after a choppy session.

Japan's Nikkei index closed 0.37 per cent lower at 38,208.03 and fell 0.2 per cent for the week, marking its third consecutive week of losses.

The broader Topix index settled 0.24 per cent lower at 2,680.71. Exporters such as Sony, Toyota Motor, and Nissan shed two and four per cent respectively while tech stocks like SoftBank and Tokyo Electron dropped one and two per cent respectively.

Seoul stocks fell, a day after the Bank of Korea surprised markets with an interest-rate cut, citing slower-than-expected economic growth. An increasingly tense geopolitical environment on the Korean Peninsula also weighed on investors' risk appetite, sending the benchmark Kospi down 1.95 per cent to 2,455.91.

Australian markets finished marginally lower and bond yields fell across the curve as Reserve Bank Governor Michele Bullock warned of prolonged restrictive monetary policy, saying inflation is "too high" to consider interest-rate cuts.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index inched up 0.1 per cent to close at 13,066.92.

US markets were closed on Thursday for the Thanksgiving holiday and will open for half a day on Friday.

Oil prices were up on Friday but looked set for weekly losses on the Israel-Hezbollah ceasefire deal in Lebanon. US West Texas Intermediate crude futures rose 0.6 per cent to $US69.12 a barrel, but were down 2.9 per cent for the week.

Gold was last 0.8 per cent higher at $US2,662.36 per ounce on the weak dollar, but was on course for a three per cent decline for the month, its steepest drop in over a year.

with DPA