Shares in Tokyo gain on weak yen, Australia flat on weak oil prices

Investing.com - Shares in Tokyo rose on Friday on gains overnight in the U.S. and ahead of polls the ruling party is expected to win handily at the weekend, but Australia stayed nearly flat as oil prices fell to their lowest levels in five years.

The Nikkei 225 was up 0.7% to 17369.78, as the U.S. dollar strengthened.

The gains in Japan came after U.S. stocks rose Thursday with the help of stronger-than-expected data on U.S. consumer spending.

While Sunday's lower house parliamentary election results in Japan will be closely watched, no major changes affecting markets are expected, with the ruling Liberal Democratic Party-led coalition seen keeping its grip on power.

Oil fell below $60 a barrel overnight, the lowest level since July 2009, cutting into gains in the energy sector.

Australia's S&P/ASX 200, where major oil producers trade, was unchanged at 5228.80. Horizon Oil Ltd (ASX:HZN) was down 7.3%, Santos Ltd (ASX:STO) was off by 6.9% and Oil Search Ltd (ASX:OSH) was down 3.9%.

Up ahead China reports industrial production, retail sales and fixed asset investment for November at 1330 local time (0530 GMT). Industrial production is seen up 7.5%, retail sales likely gained 11.5% and fixed asset investment rose 15.7%, according to analyst estimates.

Overnight, falling oil prices continued to weigh on energy stocks on Friday and dampen broader equities along with them, while fears of a U.S. government shutdown dampened spirits on Wall Street as well, though upbeat U.S. retail sales kept indices in positive territory at the closing bell.

At the close of U.S. trading, the Dow 30 rose 0.36%, the S&P 500 index rose 0.45%, while the Nasdaq Composite index rose 0.52%.

The U.S. Commerce Department reported earlier that retail sales rose 0.7% last month, beating expectations for a gain of 0.4%.

October's retail sales growth figure was revised up to 0.5% from 0.3%.

Core retail sales, which exclude volatile transportation items, advanced 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.

Elsewhere, the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending Dec. 6 fell by 3,000 to 294,000, beating market calls for the figure to increase to 299,000.

Thursday's data helped offset bearish pressures out of energy markets and out of Washington D.C. and kept broader stock gauges in positive territory.

On Friday, the U.S. is to round up the week with data on producer prices and a preliminary report on consumer sentiment.