Friday's Asia ADR Recap

Update from 6:10 p.m. EDT

Market players in India ignored three-year-high inflation data Friday and took up stocks across all sectors. Dealers in the region said the market has already priced in the high inflation risk, so short-sellers were forced to cover positions as buyers swept in with force.

The Bombay Stock Exchange's benchmark 30-stock Sensex Index surged 377 points, or 2.3%, to 17,098.

Wholesale prices jumped 7.33% in the 12 months to April 12, above last week's 7.14% but below analysts' estimates of a 7.38% rise. Analysts blamed the high figures on a spike in mineral prices and rising food and oil prices. The inflation data were the last reading before the Reserve Bank of India (RBI) meets on Tuesday for a policy review. Analysts are split as to if the RBI will hike rates with a thin majority predicting no change to interest rates, according to Reuters.

"Though the measures to contain inflation may result in some moderation in the economic growth, it is the endeavor of the government to sustain the current momentum of high growth with price stability," said India's Finance Minister Palaniappan Chidambaram to parliament members Friday.

Indian auto giant Tata Motors (TTM Quote) received clearance from the European Union competition authorities for its acquisition of luxury auto brands Jaguar and Land Rover from Ford Motor (F Quote) for $2.3 billion. The U.S. Federal Trade Commission also approved the deal on Wednesday. American depositary shares of Tata Motors, which trade on the NYSE, finished essentially flat at $16.05.