Volkswacht Bodensee - Asia markets diverge on heels of Apple, Amazon earnings

Investor confidence in artificial intelligence has fuelled a rally in global stock markets this week that made California-based chip designer Nvidia the first $5 trillion firm.

Rosy sentiment was further boosted by a detente in the US-China trade war, with leaders agreeing on Thursday to walk back punitive measures that had disrupted international supply chains and manufacturing sectors.

But that boom showed signs of flagging on Thursday as investors processed comments by US Federal Reserve Chair Jerome Powell the previous day that cast doubt on another interest rate cut in December.

The three major Wall Street indices retreated on Thursday, with the Nasdaq dropping the most at 1.6 percent.

An earnings report released by Apple after US markets closed showed quarterly revenue that beat estimates, powered by iPhone and services revenue.

Amazon also reported earnings that were better than expected, driven by surging demand for its cloud computing services.

Tokyo's main benchmark gained more than two percent on Friday while Seoul added half a percent, with both reaching record closes.

Japan's climb came despite a sharp plunge in Nissan shares after the automotive giant said it expected to suffer an operating loss in its current fiscal year ending in March.

Trading in Seoul ended just after an announcement by US tech giant Nvidia that it will supply 260,000 of its most cutting-edge chips to South Korea.

The statement came as CEO Jensen Huang met South Korean President Lee Jae Myung on the sidelines of the APEC summit. Also in attendance on Friday were leaders including Chinese President Xi Jinping and Prime Minister Mark Carney of Canada.

Taipei finished slightly down and Sydney closed flat.

In Hong Kong, shares of Chinese electric vehicle powerhouse BYD tumbled after results announced on Thursday evening showed a 33 percent year-on-year slump in third-quarter profit.

Hong Kong's main benchmark was down by more than one percent in the final hour of trading. Shanghai closed the day 0.8 percent lower.

"While (BYD's) near-term domestic growth may face headwinds from ongoing price discipline and evolving government policies, the international segment offers a robust counterbalance," HSBC analyst Yuqian Ding said in a report.

Challenges in the Chinese economy were further highlighted by official data on Friday that showed factory activity shrinking in October for the seventh successive month.

Xi and US President Donald Trump struck several key deals during Thursday's meeting that had been anticipated by observers.

Washington agreed to cut some tariffs on Chinese goods, while Beijing committed to keep supplies of critical rare earths flowing.

Trump and Xi have not yet signed a comprehensive trade agreement, and experts say the meeting amounted to a tentative one-year truce in the trade war between the world's top two economies.

- Key figures at around 0720 GMT -

Tokyo - Nikkei 225: UP 2.1 percent at 52,411.34 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 25,986.71

Shanghai - Composite: DOWN 0.8 percent at 3,954.79 (close)

West Texas Intermediate: DOWN 0.5 percent at $60.30 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $64.80 per barrel

Euro/dollar: DOWN at $1.1560 from $1.1564 on Thursday

Pound/dollar: DOWN at $1.3135 from $1.3142

Dollar/yen: UP at 154.28 yen from 154.06 yen

Euro/pound: UP at 88.01 from 87.98 pence

New York - Dow: DOWN 0.2 percent at 47,522.12 (close)

London - FTSE 100: FLAT at 9,760.06 (close)

C.Koch--VB