Asian stocks closed mixed on Friday, with Chinese and Hong Kong equities retreating as weak factory data compounded market skepticism over the U.S.-China trade talks, while Japanese shares surged on hawkish signals from the Bank of Japan.
Chinese shares pulled back from a recent decade high after data showed manufacturing activity in the mainland contracted for the seventh straight month in October.
The retreat also followed a high-stakes meeting between the U.S. and Chinese leaders, with market analysts casting doubt on whether the agreement represents a breakthrough in the trade war between the world's two largest economies.
The Shanghai Composite Index, the main gauge of Chinese stocks, lost 0.8% or 32.11 points to reach 3,954.79 points. The Shenzhen Component Index slid 1.1% or by 153.91 points to 13,378.21.
In company news, Haier Smart Home (SHA:600690) finished 4% higher in Shanghai after posting a 13% rise in third-quarter profit to 5.34 billion yuan. Luxshare Precision Industry's (SHE:002475) shares closed 3% lower despite seeing a 32% rise in Q3 profit.
In contrast, Japanese shares jumped, with the Nikkei 225 Index climbing 2.1% to close at 52,411.34. The jump was fueled by comments from Bank of Japan Governor Kazuo Ueda, who signaled a possible interest rate hike in December or January, with the timing dependent on wage trends and the yen's movement.
The BOJ also raised its growth forecast, maintaining an optimistic view of Japan's economic recovery despite global risks.
On the corporate front, Denso (TYO:6902) posted a 31% drop in fiscal first-half profit to 131.4 billion yen even as revenue rose 3.3% to 3.59 trillion yen. Its shares closed 6% lower.
Nomura Real Estate (TYO:3231) reported a 26% fall in fiscal first-half profit to 31.4 billion yen even as revenue rose 4.3% to 397.7 billion yen. Its shares slipped 3.2%.
Hong Kong equities fell, tracking losses in China. The Hang Seng Index slipped 376.04 points, or 1.4%, to 25,906.65, while the Hang Seng China Enterprises Index dropped 178.28 points, or 1.9%, to 9,168.58.
BYD (HKG:1211, SHE:002594) closed more than 3% lower after posting a 33% decline in attributable profit in the third quarter, while Weichai Power (HKG:2338, SHE:000338) advanced over 4% after posting a year-on-year rise in third-quarter profit.
In South Korea, shares closed higher, buoyed by technology and automotive stocks. The Korea Composite Stock Price Index or Kospi rose 20.61 points, or 0.5%, to end at 4,107.5. The Kosdaq also increased by 9.56 points, or 1.1%, to close at 900.42.
Stocks rose after U.S. chipmaker Nvidia announced a deal to supply over 260,000 of its advanced Blackwell AI chips to the South Korean government and major domestic firms, including Samsung Electronics (KRX:005930), whose shares climbed 3%.
Elsewhere, Soop (KOSDAQ:067160) closed nearly 3% higher on Friday following the company's announcement of higher earnings in the third quarter.
Meanwhile, Singapore shares closed marginally lower, with the Straits Times Index ending 0.2%, or 8.82 points, down at 4,428.62.
Shares of Addvalue Technologies (SGX:A31) were up nearly 8% after it was removed from the watchlist of the Singapore Exchange Securities Trading after achieving profitability in 2024 and 2025.
Lendlease Global Commercial REIT's (SGX:JYEU) shares were down nearly 2% at the close as its portfolio committed occupancy came in at 95% during the fiscal first quarter ended Sept. 30.
Indian equities declined for a second consecutive session as investors booked profits amid mixed corporate earnings, a strong U.S. dollar, and weak global sentiment.
At close, the BSE Sensex fell 465.75 points, or 0.6%, to 83,938.71, while the NSE Nifty 50 dropped 155.75 points, or also 0.6%, to 25,722.10.
Eternal (NSE:ETERNAL, BOM:543320), NTPC (NSE:NTPC, BOM:532555), and Cipla (NSE:CIPLA, BOM:500087) were among the top drags on the indices, while Bharat Electronics (NSE:BEL, BOM:500049) led the gainers with shares up nearly 4%, followed by Eicher Motors (NSE:EICHERMOT, BOM:505200) and Shriram Finance (NSE:SHRIRAMFIN, BOM:540149).