Greater China markets traded lower after the world’s second largest economy reported economic data that missed expectations.
Hong Kong’s Hang Seng Index fell by 1.55 percent after China reported that industrial production in November grew 5.4 percent year-on-year, lower than the 5.9 percent that Reuters projected. In mainland markets, the Shanghai composite was 0.54 percent weaker, while the Shenzhen composite slipped 0.71 percent.
Following the release of economic data in China, Australia’s ASX 200 declined 1.08 percent. The Australian dollar, which was near flat against the U.S. dollar earlier on Friday, fell 0.55 percent.
Other Asian markets were also in negative territory. South Korea’s Kospi slipped 1.40 percent.
Over in Japan, the Nikkei 225 dipped 1.99 percent, while the Topix index was down 1.45 percent.
The Bank of Japan released the closely watched survey before Japanese markets opened on Friday. The Tankan survey showed confidence among large Japanese manufacturers was steady in December compared to three months ago. Economists polled by Reuters had expected a deterioration in sentiment.
“Tankan shows the rate of activity remaining strong, in contrast to the very weak 3Q GDP results” Robert Carnell, ING’s chief economist and head of research in Asia Pacific, wrote in a note.
The Tankan survey “is a better indication of the underlying strength of the Japanese economy than the prior GDP figures,” Carnell added. The Japanese economy contracted by 2.5 percent in the third quarter.
Despite that, businesses in Japan were more pessimistic about their prospects in the coming three months.
Meanwhile, Apple screen supplier Japan Display surged more than 40 percent after reports that the company is in talks with Chinese businesses and investment funds about potential alliances. Nothing has been decided but Japanese financial media Nikkei said possible partners include Chinese state-owned Silk Road Fund, Chinese electronic parts maker O-film Tech and Chinese auto parts maker Minth Group.
The Japanese yen inched up slightly to 113.42. The dollar index, which measures the greenback against a basket of major currencies, was at 97.094.
On Thursday, the European Central Bank said it’s bringing to an end a crisis-era bond-buying program this month. Bond purchases by the ECB will fall from 15 billion euros ($17.04 billion) a month to zero by the end of December, but the central bank plans to spend cash from maturing bonds to purchase additional debt.
The ECB also left benchmark interest rates unchanged.
The euro slipped after the ECB announcements. In early Asian trade, the single currency was flat against the U.S. dollar at 1.1357.
U.S. stocks seesawed on Thursday while investors digested new developments in the ongoing U.S.-China trade war after a volatile week on Wall Street.
Equities rose broadly earlier in the day but ended the session mixed. The Dow Jones Industrial Average closed 0.29 percent to close higher at 24,597.38 after alternating between gains and losses throughout the day. The S&P 500 fell marginally by 0.53 percent to 2,650.54, while the Nasdaq Composite dipped 0.4 percent to 7,070.33
— CNBC’s Sam Meredith and Fred Imbert contributed to this report.
