Chinese shares ended up higher on Friday, recording its highest weekly rally in almost two months, backed by a collection of up-to-date economic data and optimism from a potential trade agreement with the US.
The CSI300 blue chip composite index decreased by 0.6 percent to 3.902.39, while the Shanghai Composite Index increased by 0.4 percent to 2.912.00 in pre-market sessions, Thursday.
For the week, CSI300 was up by 1.9 percent, while SSEC added 1.4 percent, both of which had the highest weekly increases since 11 October.
In nearly three years in November, China's factory output soared at the fastest pace, with solid increases in performance and new orders, a private business survey on Monday showed.
Local Demand Picking Up
This comes after official data revealed this manufacturing production in the mainland bounced back suddenly to growth levels for the first time in seven months, as domestic demand picked up on Beijing's rapid boost to steady growth.
On Wednesday, a private survey showed that the Chinese service sector activity was increasing to a high of seven months in November as new businesses, especially export-related ones, are picking up.
On the Chinese trade and factory sector, in the midst of conflicting reports lately, expectations for a tentative agreement with their American counterparts remained largely firm.
Trade talks between Washington and Beijing are "moving in the right direction," U.S. President Donald Trump said on Thursday, maintaining an upbeat tone even as Chinese officials held fast to their position that new tariffs had to fall off as part of an informal deal to de-escalate the 17-month trade animosity between the two nations.
Yuan Up Vs Greenback
In Japan, MSCI's stock index made some decent rally by 0.56 percent, whereas Japan's Nikkei index finished by 0.23 percent.
In currencies, the Chinese yuan was reported at 7,035 per U.S. dollar, 0.13 percent stronger than the previous 7,0444 rate.
During the last few months, the Shanghai Stock composite index has made an impressive climb, notching 16.7 percent and the CSI300 has also moved up by 29.7 percent. The H-Share Index of China, which is listed in Hong Kong's stock market, has advanced by 3 percent. Shanghai shares have likewise rallied this month by 1.4 percent.
Meanwhile, stocks linked to gold, a safe haven asset, dropped in both Hong Kong and the mainland, following large gains reported on Wednesday when Trump indicated that he was in no hurry to reach a trade deal and that an agreement could not be signed until after the elections next November.
