Japan’s Nikkei closes shy of 40,000 record level

Japan's Nikkei 225 ended just short of breaching the 40,000 level, leading gains in Asia stocks on Friday, while China markets rose as investors digested manufacturing data from the mainland, reports CNBC.
Japan's Nikkei 225 hit a fresh record high, closing 1.9 per cent higher at 39,910.82. The broader Topix index added 1.3 per cent to end at 2,709.42 -- it rose 1.8 per cent for the week.
Official data showed China's February manufacturing PMI at 49.1, in line with a Reuters Poll forecast. The private Caixin manufacturing final PMI came in at 50.9, slightly higher than the previous month's 50.8.
A PMI reading above 50 indicates expansion, while below that denotes a contraction.
China's CSI 300 closed 0.6 per cent higher at 3,537.8, extending gains after closing almost 2 per cent higher in the last session. The index was up 1.4 per cent for the week.
Hong Kong's Hang Seng index was 0.4 per cent higher, still set for a weekly decline of 0.9 per cent.
In Australia, the S&P/ASX 200 ended 0.6 per cent higher at 7,745.60. The index rose 1.3 per cent for the week.
South Korea markets were shut for the Movement Day holiday.
Meanwhile, European markets moved higher on Friday to start the new trading month after a winning February, as investors assessed fresh inflation data out of the euro zone.
The pan-European Stoxx 600 was up 0.4 per cent by mid-afternoon, with banks adding 1.3 per cent to lead gains while insurance stocks fell 0.4 per cent.
February's flash euro zone inflation reading showed the headline consumer price index fell to 2.6 per cent from January's 2.8 per cent. Economists polled by Reuters had forecast a headline reading of 2.5 per cent.
The European Central Bank will be monitoring Friday's reading closely as it charts its course of future interest rate cuts, with economic growth remaining stagnant across much of the bloc. The market expects the ECB to begin cutting in June, alongside the Fed.