Investing.com – Most Asian stocks rose on Friday, led by a sharp rise in South Korean stocks, but Chinese stocks pared earlier losses on hopes of new stimulus from the world’s second-largest economy. The section was reversed.
Japan’s stock markets have been closed and will remain closed until January 6, resulting in lower trading volumes.
U.S. stock index futures edged higher in Asian trading on Friday, stabilizing from a weak performance at the end of 2024.
South Korean stocks soar, lifting broad sentiment
South Korea’s index ended a five-day losing streak on Friday and rose nearly 2%. The index covered most of this week’s losses and was on track for weekly gains.
Amid an unprecedented political crisis, South Korea on Thursday announced policy measures aimed at attracting foreign investment to stabilize financial markets and stimulate domestic demand. The efforts come as the country grapples with declining consumer confidence and growing economic uncertainty.
South Korean President Yun Seok-Yeol was impeached and suspended from office on charges of rioting and abuse of power.
According to the latest update, authorities entered Ng’s compound on Friday, avoiding protesters who had gathered outside to execute the arrest warrant.
Other regional markets took the recovery in Korean stocks as a positive cue, as South Korea is seen as a key pillar of the East Asian economy.
The Philippine index rose nearly 1%, while Singapore’s index rose slightly on Thursday.
Australia’s index rose 0.6% and India’s index rose 0.2%.
Chinese stocks cut early losses on hopes of new economic stimulus
Chinese stocks were mostly weak, with the index down 0.2%. Both indexes were low early in the session.
The Hong Kong index rose 1%.
The People’s Bank of China has announced that it will lower interest rates from the current 1.5% level “at an appropriate time” in 2025, the Financial Times reported on Friday.
The central bank lowered interest rates in September 2024. Government officials have signaled they will ease monetary policy in 2025 and recently launched a series of stimulus measures to boost the struggling economy.
A day earlier, data showed Chinese growth slowed more than expected in December, suggesting the effects of recent stimulus measures are wearing off.