Asia stocks, Dollar rise on China inflation data relief, Details.

Asia stocks, Dollar rise on China inflation data relief, Details.

Asian stocks and the dollar bounced on Friday, erasing some losses from the previous day, as stronger-than-expected Chinese inflation data eased some concerns about the health of world’s second-biggest economy.

Source: fxBazooka

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4 percent after dropping 1.1 percent on Thursday, when weak Chinese export numbers hit global equities, stopped a rise in U.S. yields and halted the dollar’s advance.

The index was headed for a loss of 2.1 percent on the week.

Chinese data again set the tone on Friday, with producer prices unexpectedly rising in September for the first time in nearly five years, while consumer inflation also beat expectations. The producer price increase will be good news for Beijing as it struggles to reduce a mountain of corporate debt.

In company news, shares of Nikkei heavyweights Fast Retailing climbed 4.59 percent after the company, which owns clothing brand Uniqlo, said on Thursday it expected its fiscal 2017 operating profit to jump 37.5 percent to 175 billion yen ($1.68 billion).

South Korean electronics giant Samsung gained 1.67 percent to 1,583,000 Korean won a share, despite announcing Friday morning before market open that it was going to take a 3.5 trillion won ($3.1 billion) hit to its operating profit over the next two quarters from the fallout of its bungled Galaxy Note 7 recall.

Analysts have, however, said Samsung's strong balance sheet and substantial liquidity were expected to absorb the financial impact, which could be why investors shrugged off the news.

In other news, Reuters reported, citing sources, Chinese state-owned chemical companies, Sinochem Group and ChemChina were in talks about a possible merger to create a chemicals, fertilizer and oil giant with almost $100 billion in annual revenue.

Sinochem shares were up 9.16 percent and ChemChina added 3.15 percent.

Oil prices advanced during U.S. hours on Thursday, following data stateside that showed drawdowns in diesel and gasoline, while crude inventories showed a buildup.

The U.S. Energy Information Administration data showed crude stocks increased 4.9 million barrels in the week ended on October 7, well above analysts' forecast of a 700,000-barrel rise, according to a Reuters report.

However the EIA data showed distillates, which include diesel and heating oil, fell 3.7 million barrels and gasoline declined 1.9 million barrels, Reuters wrote.

During Asian hours, prices advanced further; U.S. crude futures traded up 0.75 percent at $50.82 a barrel, after gaining 0.5 percent during U.S. hours. Global benchmark Brent was up 0.33 percent at $52.19, following a 0.4 percent gain overnight.

South Korea’s Kospi added 0.5 percent and Australian stocks were up 0.1 percent. Shanghai dipped 0.2 percent while the Hang Seng rose 0.3 percent.

Japan’s Nikkei was flat after weaving in and out of the red. It looked set for a 0.3 percent weekly loss as investors braced for upcoming earnings reports.

“Until new catalysts emerge, investors will likely monitor both U.S. earnings and Japan Inc’s earnings,” said Kazuhiro Takahashi, an equity strategist at Daiwa Securities in Tokyo.