Asian Shares Mixed Heading Into Christmas Break

(RTTNews) - Asian stocks ended mixed on Thursday as regional gains were tempered by losses in mainland China and Japan before the holiday period. Energy and material stocks outperformed amid a rebound in oil prices and a rise on Wall Street overnight for the third day running.

The markets in Malaysia and Indonesia were closed in observance of the birth of Prophet Mohammad. Tokyo and Shanghai will be the only major Asian markets that will remain open on Friday.

Chinese shares succumbed to selling pressure after China Insurance Regulatory Commission tightened rules for insurers investing in listed firms. The benchmark Shanghai Composite index fell 23.60 points or 0.65 percent to 3,612.49. Hong Kong's Hang Seng index ended the holiday-shortened session up 97.54 points or 0.44 percent at 22,138.13.

Japanese shares fell in thin trade as trading resumed after a holiday on Wednesday for the Emperor's birthday. The benchmark Nikkei average shed 97.01 points or 0.51 percent to close at 18,789.69 while the broader Topix index fell 0.65 percent to 1,523.62.

Exporters Toyota and Sharp Corp dropped 1-2 percent as the dollar stayed in the upper 120 yen zone. Takata Corp slumped 4.8 percent after auto-safety investigators identified an eighth U.S. fatality linked to a faulty. Energy explorer Inpex Corp and JX Holdings rose about 2 percent each.

On the economic front, BoJ minutes from the Nov 18-19 meeting revealed that policymakers were optimistic about economic recovery continuing at a satisfactory pace. Members complained of slow wage and capital expenditure growth, and noted that weakness from commodity-exporting economies will be the primary downside risk.

Meanwhile, Prime Minister Shinzo Abe's cabinet today approved a record fiscal 2016 budget that focuses on welfare measures to tackle a rapidly aging society while trying to restore fiscal health.

Australian shares rose for the seventh straight session in a shortened trading session. The benchmark S&P/ASX 200 rose 65.80 points or 1.28 percent to 5, 207.60, led by gains in banks and resource stocks. The broader All Ordinaries index closed up 62.60 points or 1.21 percent at 5,256.10.

BHP Billiton, Rio Tinto and Fortescue Metals soared 4-5 percent as commodity prices showed slight signs of recovery. Gold miner Newcrest Mining gained 1.3 percent as gold rose in thin pre-holiday trade after two days of losses.

Santos advanced 2.7 percent after announcing a partnership with AGL Energy for the purchase of 254 petajoules of gas for supply to the GLNG project in Queensland. AGL Energy shares rose 0.9 percent, Woodside Petroleum rallied 2.1 percent and Oil Search climbed 3.8 percent.

The big four banks all ended up over 1 percent. Aurizon Holdings tumbled 3.7 percent, a day after the rail group flagged up to $400 million of writedowns. Slater & Gordon, which is facing a class action by rival Maurice Blackburn, dropped 2.2 percent.

Seoul shares snapped a three-day rally, as investors locked in recent gains ahead of the Christmas holiday. The benchmark Kospi average dropped 8.57 points or 0.43 percent to 1,990.65, dragged down by tech heavyweights.

Hyundai Motor gained 0.3 percent after reaching a tentative wage pact with its labor union. Mirae Asset Securities rose 1 percent after it was picked as the preferred bidder for a stake in Daewoo Securities.

In economic news, a gauge of consumer confidence in the country worsened for the first time in six months in December, the latest survey from the Bank of Korea showed. The corresponding index dropped to 103.0 from 106.0 in the previous month.

New Zealand shares hit a fresh record high in light trade as A2 Milk Co extended its recent rally. The benchmark NZX-50 index rose 30.19 points or 0.49 percent to close at 6,225.53. While A2 Milk shares jumped 9.4 percent to $1.97, Sky Network Television rose 1.1 percent to a three-week high.

Elsewhere, Singapore's Straits Times index was up half a percent and the Taiwan Weighted inched up 0.1 percent while Indian shares were marginally lower.

Taiwan's industrial production fell less-than-expected in November, though the declining trend extended to a seventh month running, official data showed. Singapore's industrial production dipped an annual 5.5 percent in November, exceeding economists' expectations for a 3.0 percent drop.

U.S. stocks rose for the third straight session overnight as oil prices rallied to a two-week high on data showing an unexpectedly large drop in U.S. crude inventories.

Nike's earnings topped estimates and a slew of data on consumer spending, personal income, new home sales and consumer sentiment painted a positive picture of the economy, buoying investor sentiment. The Dow climbed 1.1 percent, the tech-heavy Nasdaq rose 0.9 percent and the S&P 500 advanced 1.2 percent.