Asian stocks edge up on China's strong growth

Asian stocks saw modest gains on Friday, bolstered by stronger-than-expected growth in China’s economy at the close of last year.

However, the gains were capped by caution ahead of Donald Trump’s inauguration as U.S. president next week.

Japanese equities struggled though, with the Nikkei on course for a third straight losing week, after the yen popped to a one-month high amid rising bets for an imminent Bank of Japan rate hike.

The dollar clawed back some of Thursday's steep declines against major peers, the result of resurgent wagers on a Federal Reserve rate cut by June. Treasury yields also halted their decline, but remained close to the previous session's lows.

China's economy grew 5% last year, matching the government's target, but in a lopsided fashion, with many people complaining of worsening living standards as Beijing struggles to transfer its industrial and export gains to consumers.

"China markets still face structural headwinds as well as tariff risks, and the response to those will be the ultimate driver of long-term returns," said Charu Chanana, chief investment strategist at Saxo.

Mainland Chinese blue chips were up 0.47% as of 0632 GMT, while Hong Kong's Hang Seng added 0.29%. China's yuan was flat at 7.3423 per dollar in offshore trading.

Japan's Nikkei sagged 0.31%, paring earlier losses of more than 1%. The yen had earlier climbed to the highest since Dec. 19 at 154.98 per dollar then reversed course to last trade about 0.4% lower at 155.69.

MSCI's world index edged down 0.05%. Its broadest index of Asia-Pacific shares lost 0.17%.

European stock futures pointed higher though, particularly in Britain where FTSE futures climbed 0.47%. Pan-European STOXX 50 futures edged up 0.04%.

U.S. S&P 500 futures gained 0.15%, after the cash index closed down 0.2% overnight. Those small declines came after a 1.8% jump on Wednesday - the biggest daily percentage gain since the post-election rally on Nov. 6 - fuelled by strong bank earnings at the start of the new reporting season.

News.Az