Investing.com - Japanese stocks rose Friday after the yen hit its weakest level in nearly six years against the dollar, a day after the country's central bank kept its aggressive monetary-easing policy on hold and the European Central Bank surprised investors by cutting its main policy rates to bolster growth.
The benchmark Nikkei 225 continued a rally that started in early August. The index was last up 0.2%, and up about 1.6% so far this week.
The U.S. dollar rose as high as 105.71 yen in early morning trade.
China shares were mixed. The Shanghai Composite was up 0.3%, after closing at its highest level in more than 15 months Thursday as confidence in reform action from Beijing picks up. Hong Kong's Hang Seng was down 0.2%.
Elsewhere in Asia, Australia's S&P/ASX 200 was down 0.2%, amid continued weakness in the iron-ore price and the resilience of the local currency. South Korea's KOSPI was down 0.3%.
Overnight, U.S. stocks gave back earlier gains stemming from upbeat U.S. data and a European Central Bank move to loosen policy, as investors sold for profits and jumped to the sidelines ahead of Friday's August jobs report.
The Dow 30 fell 0.05%, the S&P 500 index fell 0.15%, while the NASDAQ Composite index fell 0.22%.
The U.S. services sector grew at its strongest pace in August since 2005, which sparked a rally on Wall Street earlier.
The Institute for Supply Management reported that its services index rose to 59.6 in August from 58.7 in July, far surpassing market forecasts for a downtick to 57.5.
A reading above 50 indicates expansion in the sector, and the index offset lackluster U.S. employment data.
The Labor Department reported that the number of individuals filing for first-time unemployment assistance in the U.S. last week rose by 4,000 to 302,000 from the previous week’s total of 298,000.
Analysts had expected jobless claims to rise by 2,000 to 300,000 last week.
Elsewhere, payroll processor ADP reported that its non-farm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000.
At the same time data showed that the U.S. trade deficit narrowed to the lowest in six months in July.
Stocks also applauded an ECB decision to stimulate the European economy.
The European Central Bank trimmed its benchmark interest rate to a record-low 0.05% from 0.15%, surprising many market analysts who had expected no change.
The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.
Stocks rallied after ECB President Mario Draghi said the bank will begin an asset-backed securities purchasing program to shore up the recovery and steer the continent away from deflationary decline.
Draghi did not say how much debt the ECB planned to purchase, as further details will emerge in October. On Friday, investors will shift their focus from Europe across the Atlantic to the U.S., which will release its August jobs report.