Asia stocks presented a mixed picture on Friday, reflecting divergent economic trends across the region. Japanese and South Korean shares continued their strong performance, extending recent record rallies driven by sustained gains in the technology sector. In contrast, Chinese shares faced selling pressure and moved lower. This decline followed the release of weak official factory activity data. Gold prices fell to around $4,000 per ounce on Friday, set for a second straight weekly loss, pressured by fading expectations of Federal Reserve rate cuts and a US-China trade deal. Japan ( NKY:IND ) rose 1.84% to around 52,200, while the broader Topix Index rose 1% to 3,335 on Friday, with Japanese stocks hitting fresh record highs amid a strong rally in technology shares. The Japanese yen hovered near nine-month lows around 154 per dollar on Friday and was on track for a sharp 4% monthly decline, pressured by the election of Prime Minister Sanae Takaichi. Japan's economic data for September 2025 delivered a mixed picture . The industrial production, which unexpectedly rose by 2.2% month-over-month in September, according to flash data, beating the market expectation of a 1.5% increase and marked a strong rebound from the 1.5% drop recorded in August. In contrast, retail sales offered a weaker-than-expected performance, rising by just 0.5% year-on-year in September. The labor market showed signs of slackening, with the unemployment rate holding steady at 2.6% in September, unchanged from August. The number of unemployed individuals increased by 20 thousand, reaching a 14-month high of 1.81 million. Recent data also showed Tokyo’s core inflation rose more than expected in October, complicating the domestic policy outlook. China ( SHCOMP ) fell 0.68% to below 3,980, while the Shenzhen Component dipped 0.05% to 13,525 on Friday, extending losses from the previous session as disappointing manufacturing data weighed on sentiment, and the offshore yuan held its decline around 7.11 per dollar on Friday as investors weighed disappointing PMI data and the outcomes from the recent Trump-Xi meeting. The NBS Manufacturing PMI plummeted to 49.0 in October 2025 , a sharp decline from September’s reading of 49.8, below the market forecast of 49.6 but also marked the lowest level since April. The NBS Non-Manufacturing PMI stood at 50.1 in October, barely budging from September’s 10-month low of 50.0. China has allocated 200 billion yuan (USD 28 billion) in local government special bond quotas to support investment in certain provinces, a spokesperson for the National Development and Reform Commission, Li Chao, said on Friday, as reported by Reuters. Hong Kong ( HSI ) fell 0.96% to 26,078 in early trade on Friday, retreating for the third consecutive session as most sectors declined. India ( SENSEX ) fell 0.34% to 84,184 in a choppy morning session on Friday, extending losses for a second straight session, mainly weighed down by declines in metals, banks, and financial services. Australia ( AS51 ) fell 0.04% rose 0.4% to around 8,920 on Friday, snapping its three-session losing streak, buoyed by gains in gold stocks and miners on higher commodity prices. Australia's Final Demand Producer Price Index (PPI) rose by 1.0% quarter-on-quarter in Q3 2025 . This rate accelerated notably from the 0.7% increase recorded in the prior quarter, and easily topped market forecasts of a 0.8% rise. Separate data showed , Australia’s private sector credit rose 0.6% month-on-month in September 2025, matching the pace of the previous month but exceeding market expectations of a 0.5% increase. In the U.S. on Thursday, all three major indexes ended lower overnight after disappointing big tech earnings, and after Fed Chair Powell signaled that a December cut “is not a foregone conclusion” after a second rate reduction this year. U.S. stock futures advanced on Friday after upbeat quarterly results from major tech firms: Dow +0.09% ; S&P 500 +0.66% ; Nasdaq +1.18% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China's economic slowdown deepens as factory activity hits six-month low to 49.0 in October Australia Q3 producer inflation hits one-year high, rises by 1.0% Q/Q Japan's mixed September: Factory output soars, retail sales & labor lag Bank of Japan holds rates steady at 0.5% as expected, boosts growth forecast China's Q3 GDP 4.8% Y/Y, hits slowest pace since 2024, but beats quarterly expectations
