HONG KONG - Asian stock markets trod water on Friday, with solid economic data from the United States providing support, but traders taking a wait-and-see attitude to Europe's stabilisation efforts.
Tokyo's Nikkei was flat, ending the session down just 7.46 points at 10,303.83 as it maintained its year-end buoyancy - the index has gained around 12 percent since November 1.
Sydney's S&P/ASX 200 ended the session down 0.44 percent, or 20.9 points, at 4,763.1, while Shanghai's Composite Index fell 0.15 percent, or 4.40 points, to 2,893.74.
However Hong Kong was up 0.20 percent, or 46.07 points, at 22,714.85 by the close.
Many smaller markets also ended the week with gains, with Seoul defying tensions on the Korean peninsula and Taipei touching a 31-month high at one point in the session as capital rolls into the tech-led economy.
US stocks closed higher Thursday after new claims for unemployment benefits fell last week to almost the lowest level of the year, while other data showed a 3.9 percent surge in construction of new US housing in November.
The numbers were positive for the dollar - generally a good sign for Japanese stocks - while the euro also held up pending completion of a European summit intended to tackle the eurozone's debt problems.
Traders appeared relatively relaxed about the eurozone's problems.
"Equity markets appear less sensitive to European sovereign debt problems," Jamie Spiteri, head of trading at Shaw Stockbroking in Sydney, told Dow Jones Newswires. "Money is flowing into Australian equities before year-end and I see ongoing upside potential into the new year."
Towards the close of the Asian day, ratings agency Moody's announced it was slashing its credit rating on Ireland by five notches from Aa2 to Baa1 because of increasing uncertainty about the country's economy and public finances.
On Thursday, Moody's warned it might further slash its Ba1 rating of Greece's government bonds, having also issued a warning on Spain.
At a summit in Brussels Thursday, European Union leaders agreed on a change in the bloc's rule-book, the Lisbon Treaty, enabling the creation of a permanent rescue fund for eurozone countries in crisis.
With Portugal and even Spain predicted to need aid like Greece and Ireland, EU President Herman Van Rompuy said they were "ready to do whatever is required to ensure the financial stability of the eurozone".
Chinese shares remained constrained by worries about the likelihood of further measures to cool the mainland economy in the face of surging inflation.
"Concerns about (the potential) for policy tightening are still here," said Zhang Xiang, an analyst at Guodu Securities. "Even though people widely expect December's consumer price index growth will decrease from November's... it's clear that inflationary pressure will remain high in the first half of 2011."
On currency markets the euro rose to US$1.3292 from 1.3242 in New York late Thursday, and to 111.57 yen from 111.12 yen.
The US dollar was almost flat at 83.93 yen from 83.92, after rising in New York.
On Wall Street, the Dow Jones Industrial Average rose 0.36 percent, while the broader S&P 500 rose 0.62 percent and the tech-rich Nasdaq advanced 0.77 percent.
Oil was higher amid expectations that crude demand will stay strong into next year.
New York's main contract, light sweet crude for January delivery, gained US$0.52 to US$88.22 a barrel. Brent North Sea crude for February advanced US$0.34 to US$91.94 a barrel. The January contract, which expired Thursday, settled at US$91.71.
Gold closed at US$1,375.00-1,376.00 an ounce in Hong Kong, down from Thursday's close of US$1,384.00-1,385.00.
In other markets:
The Philippines
Manila rose 0.44 percent, or 17.93 points, to 4,057.33 after sharp declines the previous two sessions.
Philippine Long Distance Telephone climbed 2.23 percent to 2,476 pesos, while conglomerate San Miguel Corp. rose 3.47 percent to 140 pesos.
New Zealand
Wellington rose 0.94 percent, or 31.34 points, to 3,325.11.
Air New Zealand rose 1.4 percent to 1.47 New Zealand dollars after
Australia
Australia conditionally approved an alliance with Virgin Blue. Telecom rose 2.8 percent to 2.23 on expectations it will dominate a planned broadband network.
Taiwan
Taipei rose 0.41 percent, or 35.70 points, to 8,817.90.
Taiwan Semiconductor Manufacturing Company rose 2.39 percent to 72.9 Taiwan dollars, while computer maker Acer fell 2.59 percent to 90.2.
South Korea
Seoul rose 0.85 percent, or 17.06 points, to 2,026.30, supported by gains in financial and brokerage stocks.
Indonesia
Jakarta rose 0.28 percent, or 9.83 points, to 3,581.56.
Singapore
Singapore rose 0.17 percent, 5.34 points, to 3,153.01 points.
Commodities trader Olam International was steady at 3.06 Singapore dollars. United Overseas Bank gained 12 cents to 17.98 dollars.
Malaysia
Kuala Lumpur rose 0.16 percent, or 2.36 points, to 1,499.88.
Thailand
Bangkok edged down 0.69 percent or 7.14 points to 1,022.46.
Banpu lost 6.00 baht to 796.00, while Siam Cement lost 5.00 baht to 340.00
