HONG KONG (MarketWatch) — Most Asian stocks rose Friday as investors
took in their stride indications that no major progress had been made to
avert the U.S. fiscal cliff, with Chinese shares rebounding from near
four-year lows to snap a four-day losing streak.
The performance added to the solid monthly gains for most regional
markets: Japanese and Taiwanese stock benchmarks ended November with a
5.8% surge, while the Shanghai and Shenzhen indexes finished November
with a loss of 4.3% and 10.9%, respectively.
South Korea’s Kospi
KR:SEU
-0.10%
defied the broad regional advance to end 0.1% higher, but finished both the week and the month with a 1.1% gain.
Regional stocks managed to climb on Friday despite uncertainty over
whether U.S. politicians will be able to prevent more than $600 billion
in tax hikes and spending cuts that are set to kick in automatically in
January.
Read: U.S. stocks extend gains on ‘cliff’ hopes.
IG Index strategist Stan Shamu said the back-and-forth on the fiscal
cliff would likely fuel market volatility through the end of December.
“Many [are] now convinced that negotiations will mirror that of last
August’s debt-ceiling disaster and go right down to the wire. As a
result, a choppy last month of the year is probably the most likely
scenario, disappointing those hoping for a Santa Claus rally,” Shamu
said.
The term “Santa Claus rally” refers to a year-end gain for shares that tends to start in December.
Still, a slew of Japanese data out Friday helped to lift sentiment, with
the country’s industrial production unexpectedly rising in October
after a sharp decline in the previous month.
Read full story on the Japanese economic data.
Samsung limits drinking after work
Samsung has implemented a strict rule to battle the excessive drinking that's a standard feature of "hoesik" (staff dinners) in South Korea.
Exporters performed particularly well as the dollar
USDJPY
+0.69%
rose against the yen to ¥82.65 from ¥82.11 in early action, while the euro
EURJPY
+0.89%
hit a seven-month high against the yen.
In other stock market related news, People’s Insurance Co. Group of
China — commonly known as PICC — priced its initial public offering at
HK$3.48 (45 U.S. cents), a level near the low end of its indicative
price range of HK$3.42–HK$4.03. The firm makes its trading debut on
Dec.7, and PICC’s listing is set to become the largest IPO — at a
projected $3.1 billion — for a Chinese state-owned company since 2010.
Over on mainland Chinese bourses, construction-related shares advanced
after Vice Premier Li Keqiang reportedly said urbanization remains a
main focus area for the leadership in coming years.
Sarah Turner is MarketWatch's bureau chief in Sydney. Follow her on Twitter @SarahTurnerMKTW.
Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.