Investing.com– Most Asian stocks were higher on Friday led by sharp gains in South Korean stocks, while Chinese shares pared some earlier losses amid hopes of new stimulus from the world’s second-largest economy.
Stock markets in Japan were closed and will remain closed through January 6, contributing to weaker trading volumes.
U.S. stock index futures rose in Asian trading on Friday, stabilizing after a subdued performance in late 2024.
South Korean shares are rising, improving broader sentiment
The South Korean index broke a five-day losing streak on Friday, jumping almost 2%. The index covered most of the ground it lost this week and was on track for a weekly gain.
Amid an unprecedented political crisis, South Korea on Thursday announced policy measures aimed at attracting foreign investment to stabilize financial markets and boost domestic demand. These efforts come as the country grapples with declining consumer confidence and increased economic uncertainty.
South Korean President Yoon Suk Yeol has been impeached and suspended on charges of insurrection and abuse of power.
According to the latest updates, authorities entered the residential complex on Friday to execute an arrest warrant, avoiding protesters who had gathered outside.
Other regional markets have picked up positive signs of a recovery in South Korean shares, as the country is seen as a key pillar in the East Asian economy.
The Philippine index rose almost 1%, while Singapore’s index was higher on Thursday.
The Australian index gained 0.6%, while the Indian index rose 0.2%.
Chinese stocks pare early losses on hopes of new stimulus
China’s was largely subdued, with the index down 0.2%. Both indices were lower earlier in the session.
Hong Kong’s index rose 1%.
The People’s Bank of China said it will cut interest rates from the current level of 1.5% in 2025 “at an appropriate time,” the Financial Times reported on Friday.
The central bank had cut interest rates in September 2024. Government officials have announced a looser monetary policy in 2025 and recently handed out a series of stimulus checks to boost the sluggish economy.
A day earlier, data showed Chinese growth in December was weaker than expected, suggesting the impact of recent stimulus measures is waning.
