Asian Markets Higher Amid Cautious Trades

(RTTNews) - Asian stock markets are higher on Friday with investors indulging in some selective buying, on the back of recent fairly encouraging economic data out of the U.S. However, buying interest is subdued in most of the markets in the region following a holiday on Wall Street overnight for Christmas.

The Japanese stock market swung between gains and losses this morning, with investors reacting to a slew of economic data.

The benchmark Nikkei 225 index was down 29.6 points or 0.2 percent at 17,779.2 when the morning session ended.

Yokohama Rubber, Trend Micro, Showa Denko KK, Canon Inc. (CAJ), Tokai Carbon, Kao Corp., J Front Retailing, Showa Shell Sekiyu KK and Ashai Glass declined 2 to 5 percent.

Honda Motor (HMC), Kikkoman Corp., Japan Tobacco, Takashimaya Co., Olympus Corp., Bridgestone Corp., Inpex Corp., Nisshin Steel, Aozora Bank and Nippon Light Metal holdings were down 1 to 2 percent at the break.

Among the gainers, Tokyo Electric Power rose over 4 percent, Minebea Co. moved up 3.6 percent and Tokyu Fudosan Holdings Corp. advanced 3.3 percent.

Taiyo Yuden, Pioneer Corp., Heiwa Real Estate, Kansai Electric Power, Taisei Corp., Furukawa Electric, Mitsumi Electric and Tosoh Corp. gained 2 to 3 percent.

Shimizu Corp., Kawasaki Kisen Kaisha, Tokyo Tatemono, JGC Corp., NTN Corp., Chiyoda Corp., Sumco Corp., Mitsui Chemicals, Advantest Corp. (ATE), SKY Perfect JSAT Holdings Inc. and Obayashi Corp. also posted strong gains.

Shares of Sumitomo Mitsui Financial Group Inc. (SMFG) were by about 0.5 percent following an announcement from the company that it would buy Citigroup Inc.'s (C) Japanese consumer banking business.

In economic news, Japanese industrial production unexpectedly declined 0.6 percent in November, indicating the economy is still struggling to wriggle out of a slump triggered by a sales tax increase.

Japanese inflation dropped down to its lowest level in over one year, due largely to significant fall in global oil prices and lower consumer spending, a report from the Ministry of Internal Affairs and Communication showed. Core consumer price index fell to 0.7 percent in November, from 0.9 percent in the preceding month.

Japan's consumer prices grew at a slower than expected pace in November, rising 2.4 percent year-over-year, following the 2.9 percent growth in the previous month. This was slower than the 2.5 percent increase expected by economists. On a month-over-month basis, consumer prices dropped at a faster rate of 0.4 percent after the 0.3 percent decline in October.

According to another report, the jobless rate came in unchanged at 3.5 percent in November.

Meanwhile, a report from the Ministry of Economy, Trade and Industry showed Japanese retail sales to have risen 0.4 percent in November, compared to a year earlier. The data showed sales at large scale retailers to have risen 1.2 percent in the month, from a year earlier.

In the currency market, the U.S. dollar traded in the lower 120 yen level in early deals in Tokyo. The dollar is currently trading at 120.23 yen, against Thursday's close of 120.09.

Among other markets in the Asia-Pacific region, South Korea, Malaysia and Taiwan are up with modest gains. Shanghai is notably higher, while Singapore is up marginally. The Australian and New Zealand markets are closed for Boxing Day.