By Mia Lamar
Asian stock markets edged higher Friday after Wall Street shook
off a losing streak, although Japan lagged in the red as a weak
inflation reading kept buyers at bay.
Australia's S&P/ASX 200 was a standout, closing 0.2% up to
set a new five-year high. Signs of economic stabilization in China
-- Australia's largest trading partner -- have spurred a strong
quarter for the Australian market, one of the Asia's best
performers with a 10.5% increase so far.
Stocks in the U.S. rose overnight as investors set aside
concerns over budget and debt-ceiling wrangling in Washington,
sending the S&P 500 (SPX) up 0.3% for its first positive close
in six sessions.
"Investors appear to be prepared to ride through the noise of
political brinkmanship at this stage," said Ric Spooner, chief
market analyst at CMC Markets in Sydney.
Energy firms advanced in Sydney. Senex Energy Ltd. rose 2.7%
after Australian investment bank Macquarie Group Ltd. put a bullish
rating on the stock. Santos Ltd. gained 1.5%.
Elsewhere in Asia, South Korea's Kospi rose 0.2%, Taiwan's Taiex
added 0.6% and Singapore's Straits Times Index gained 0.5%.
Stocks in Hong Kong ended in positive territory following Wall
Street's gains, though trading was subdued ahead of China's Golden
Week holiday. The benchmark Hang Seng Index closed 0.4% higher
while China's Shanghai Composite rose 0.2%.
Japanese shares fell 0.3% as a weak inflation reading weighed on
investor sentiment. Core consumer prices rose 0.8% nationwide in
August, slightly stronger than economists had predicted, although
prices in the capital city of Tokyo recorded a weaker-than-expected
increase.
"The Bank of Japan has been publicizing this apparent inflation,
but we'll see that is not necessarily what is happening," said
Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.
A firmer yen also hurt shares of major Japanese exporters. The
U.S. dollar (USDJPY) traded at Yen98.53 against the Japanese
currency, compared with Yen99.02 late Thursday in New York.
Shares of major Japanese exporters were lower with Kyocera down
2.6% and Suzuki Motor Corp. off 1.8%.
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