Most Asian stock markets rose on Friday as markets bet on an economic boost from China reopening its borders this week, though gains were limited due to caution ahead of the release of closely watched nonfarm payrolls data from the United States later in the day.
The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes in China rose 0.4% and 0.2%, respectively, as the country prepares to open its borders after three years of COVID-19 closures. Both indexes were up more than 2% for the week.
Hong Kong's Hang Seng index fell 0.4% but was the best performer in Asia this week, rising more than 6%, after China announced that its borders with the Asian financial hub will reopen on January 8.
While China's reopening is expected to eventually spur economic recovery, the country is still dealing with a massive surge in COVID-19 cases in the short term, which analysts say could delay a broader reopening while still disrupting business activity.
This hasn't stopped traders from piling into Chinese stocks, which have logged stellar gains as of late, thanks to a surge in bargain hunting.
Stock markets with a high exposure to China rose on Friday as well. The Taiwan Weighted index rose 0.7%, while the ASX 200 index in Australia rose 0.7%.
South Korea's KOSPI rose 0.7%, with Samsung Electronics (KS:005930), the country's largest company, rising more than 1% despite reporting a 69% drop in fourth-quarter profit.
The company, like most other major chipmakers, is struggling to cope with a massive downturn in the electronics industry caused by slowing global economic growth.
Broader Asian markets were mixed as attention turned to the upcoming nonfarm payrolls data from the United States, which is expected to influence the country's monetary policy. While the reading is expected to show that the labour market cooled slightly in December compared to the previous month, it has surprised to the upside for the past eight months.
The Federal Reserve now has more leeway in its anti-inflation crusade, which is likely to keep US interest rates higher for longer, weighing on Asian markets.