Asia report: Japan shares rally on Suga resignation

Asian shares finished the week mixed as investors waited on US employment data later on Friday.

Japan’s Nikkei closed 1.29% higher on news that Prime Minister Yoshihide Suga had offered to resign, opening the way for a fresh government that could help the ruling party win an upcoming election.

Suga's approval rating has plunged below 30% after intense criticism for his handling of the economy, Covid-19 pandemic and Tokyo Olympics.

He said he would not run in a ruling party leadership race in September, setting the stage for his replacement after just one year in office.

China’s Shanghai Composite was 0.43% lower. Australia shares rose 0.5% and Hong Kong dropped 0.94%.

Traders are looking for any signs of the timing and pace of US tapering of stimulus measures after US non-farm payroll data is released.

Federal Reserve Chair Jerome Powell has indicated an improvement in the employment numbers is the remaining major prerequisite for action.