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Earnings Results, Soft US Inflation Report Lift Asian Stock Markets

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Asian stock markets rose moderately on Friday on earnings results and Wall Street cues, although China-exposed exchanges again wavered.

Boosting sentiment was Thursday's relatively tepid US producer price index (PPI) report, which improved perceived odds among traders that the US Federal Reserve will not raise interest rates at its September policy session.

Tokyo finished in the green, Shanghai was flat, and Hong Kong fell back. Other regional exchanges were also mixed, although Seoul's semiconductor-laden KOSPI index logged a 2.4% gain.

Brent crude oil futures rose 0.2% to $87.22 a barrel during Asian market hours.

In Japan, the Nikkei 225 opened higher and held ground, finishing up 0.6% as traders again favored tech shares.

The benchmark Nikkei 225 rose 405.21 to 68,713.80, as gaining issues outnumbered losers 131 to 92.

Leading the upside was video game maker Nexon, up 19.9%, while cybersecurity outfit Trend Micro declined 14.6%, with both moves following earnings releases.

In Hong Kong, the Hang Seng Index opened lower and could not recover, as caution again prevailed regarding China's struggling property markets and tempered consumer spending. A soft bank lending report from Beijing also dented the mood.

The broad gauge Hang Seng fell 279.66 to 25,116.85, as losing issues outnumbered gainers 63 to 27. The Hang Seng TECH Index lost 1.8% on the day, while the Mainland Properties Index fell 0.6%.

Leading the upside was Semiconductor Manufacturing International, gaining 4.8%, while JD Logistics declined 13.7%.

On the mainland, the Shanghai Composite closed flat at 3,917.18.

In economic news, outstanding yuan loans in mainland China grew by 5.1% year-on-year in July, a record low, while new bank loans contracted by 340 billion yuan, reported the People's Bank of China.

On the other regional exchanges, the Taiwan TWSE declined 0.5%; the Australian ASX 200 declined 0.8%; the Singapore Straits Times Index rose 0.4%, and the Thai Set declined 0.3%. In late trading in Mumbai, the Sensex was down 0.2%

The MSCI All Country Asia Pacific Index rose 0.4% on the day.

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