Nikkei, Topix at 13-month high

Japan's benchmark stock index rallied to a 13-month high on Friday on growing optimism for the economy, before paring part of those gains due to conflicting reports on how much progress has been made in US-China trade negotiations.

The Nikkei average was up 0.26% at 23,391.87, after climbing to as high as 23,591.09 - the highest point since Oct. 10 of last year. For the week, the index logged a 2.37% gain for its fifth consecutive weekly rise.

The broader Topix advanced 0.27% to 1,702.77, its highest in more than a year, with trade turnover reaching 3.12 trillion yen ($28.6 billion), 47% above the average over the past three months.

The Chinese commerce ministry said on Thursday that the two countries had agreed to cancel the tariffs in phases, which was confirmed by a US official, who spoke on condition of anonymity.

Although the plan appears to have met opposition from some advisers to US President Donald Trump and there is no clarity on when and where the deal will be signed, investors have so far bet that a deal will come through in the end.

"If you think corporate earnings will recover from here, you can expect further rise in share prices. Investors are now starting to expect such a scenario, which you can tell from the fact that cyclicals such as financials and energy shares are doing well," said Takuya Hozumi, global investment strategist at Mitsubishi UFJ Morgan Stanley.

Carmakers and steelmakers rose 1.4%, and banks gained 0.9%.

Toyota rose 2.2% to four-year highs, helped by its release of a share buyback plan and estimates-beating quarterly results.

Terumo rose 13.4% to record highs after the medical equipment maker posted strong earnings in the three months to September.

Isetan Mitsukoshi jumped 11.7% after the department store operator posted upbeat quarterly earnings and announced a share buyback.

Kirin Holdings gained 9.6% after the beer and beverage maker announce a buy-back totalling up to 6.8% of its shares.

On the other hand, Shiseido shed 8.3% after the cosmetics maker cut its outlook on poor sales in South Korea and Hong Kong.

Rakuten dropped 4.5% as its quarterly operating profit was almost wiped out in the three months ended September as investment in its e-commerce and mobile units weighed on profits, with the value of its bet on ride-hailing firm Lyft also sliding.

Mercari lost 18.9% after the internet shopping service operator's earnings underwhelmed investors.-Reuters

China stocks down on doubts over tariff rollback

SHANGHAI: China shares reversed gains to end lower on Friday as a Reuters report suggesting White House officials opposed rolling back tariffs on Beijing raised uncertainty around the first phase of a trade deal.

The Shanghai Composite index closed down 0.5% at 2,964.18, the lowest close since November 1. The index inched up 0.2% from the previous week.

The blue-chip CSI300 index was also down 0.5% on Friday, but gained 0.5% for the week. CSI300's financial sector sub-index fell 1%, the consumer staples sector lost 0.2% and the real estate index was down 0.8%.

The smaller Shenzhen index ended down 0.2% and the start-up board ChiNext Composite index was weaker by 0.3%. Shares were pressured as multiple sources told Reuters on Thursday the plan to cancel tariffs faces fierce internal opposition in the White House and from outside advisers.

On Thursday, US and Chinese officials said the two countries will roll back tariffs on each others' goods in a "phase one" trade deal if it is completed. Stocks had also rebounded briefly in late morning trade after data showed China's exports and imports contracted less than expected in October, providing some relief for the export-reliant economy.

Global index provider MSCI said on Thursday Chinese A-shares will rise to a weight of 4.1% in the MSCI Emerging Market Index, up from 2.55% currently, as it implements the final step of the market's weight increase in the benchmark.

MSCI will also add a list of Chinese mid-caps as planned, the index provider said in a statement following its November semi-annual index review.

The latest round of inclusions will bring $7 billion of passive inflows, with $3.6 billion going to large caps and $3.3 billion to other added shares, Zhang He, an Asia Pacific index research analyst at J.P. Morgan, said in a note. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.5%, while Japan's Nikkei index closed up 0.3%.

So far this year, the Shanghai stock index is up 18.9% and the CSI300 has risen almost 32%. Shanghai stocks have risen 1.2% this month.

About 14.97 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 13.70 billion. The Shanghai stock index is above its 50-day moving average and above its 200-day moving average.