Asian equity markets were mixed on Thursday with Japan's Nikkei at fresh six-year highs while mainland shares were dragged down by steep losses in financials.
Japan's benchmark stock index, the Nikkei, rose 0.1 percent continuing its six-year closing high and helping to prop up global equities. The U.S. dollar inched higher and some traders saw world stock markets extending their 2013 rally into next year. Optimism over the global economic outlook boosted sentiment following the release of upbeat U.S. economic data on Tuesday. Durable goods orders surged in November while a gauge of planned business spending on capital goods recorded its largest increase in nearly a year.
Markets in Australia, New Zealand and Hong Kong are closed for the Boxing Day holiday.
Nikkei up 0.9%
Japanese shares hit multi-year highs for a fourth straight session, extending the week's strong gains thanks to a weaker currency. The yen hit a new five-year low of 104.84 against the dollar, beating last week's peak of 104.64
Banks led the gains with Sumitomo Mitsui Financial, Miuzho and Mitsubushi UFJ up over 2 percent each.
Telecom firm Softbank rose 3 percent on news it is in talks to buy U.S. wireless carrier T-Mobile from Deutsche Telekom. The deal is expected to be worth $20 billion and will be carried out through its other recent American acquisition, Sprint.
Shanghai dips 1.3%
The mainland's benchmark Shanghai Composite widened losses after the People's Bank of China skipped Thursday's open market operations. The move came as the seven-day repurchase rate steadied around 5.3 percent after rising to six-month peaks last week.
Financials were among the most actively traded stocks. Pudong Development Bank, Minsheng Bank and Agricultural Bank of China eased over 1 percent each after official data showed bad loans increased by nearly $4 billion in the third quarter.
Investors also reacted to news that economic growth is likely to come in at 7.6 percent this year, according to a cabinet report cited by the official Xinhua news agency, above the government's target of 7.5 percent.
South Korean’s Kospi added 0.2% as shares rose to their highest level in nearly a month, posting a sixth straight session of gains, thanks to strong buying from institutional investors. But a weaker yen sparked declines among major domestic exporters. Samsung Electronics and Kia Motors slipped 0.1 percent each.
India's benchmark Sensex index gained 0.2% and hovered around 21,080 points as traders await a report from the Reserve Bank of India at the end of the month that could unveil a major change in monetary policy.