Asian stocks extended their recovery into the final trading day of the week as investors cheered a second day of gains in Chinese and US markets.
China’s benchmark Shanghai Composite spiked more than 1 percent in early trade on Friday, building on a 5.4 percent gain in the previous session following news that the People’s Bank of China purchased stocks from big firms and requested state-owned banks to buy more yuan on its behalf late on Thursday.
Chinese investors seemed to brush off official data released at the market open showing a 2.9 percent annual decline in July industrial profits. Shenzhen and Hong Kong shares were also more than 1 percent higher in early trade, tracking Shanghai’s gains.
Japanese stocks breached the 19,000 mark as investors digested mixed July data released before the market open.
South Korean stocks also gained for a fourth consecutive session, on track to end the week more than 2 percent higher.