Asia-Pacific markets mostly rose on Friday as investors digested a slew of economic data from key regional economies.
In Japan, industrial output unexpectedly fell by 0.1% in April compared to the previous month, defying a Reuters poll forecast which had predicted a 0.9% increase. Meanwhile, core inflation in Tokyo matched expectations by rising 1.9% in May, according to another Reuters poll.
South Korea reported a significant rise in its industrial production index, which climbed 2.2% month-on-month in April on a seasonally adjusted basis, surpassing the 1.1% increase projected by a Reuters poll.
China, however, presented less optimistic data. The manufacturing sector contracted in May, with the official purchasing managers index (PMI) dropping to 49.5 from April’s 50.4.
In market movements, Mainland China’s CSI 300 index reversed earlier gains to close 0.4% lower at 3,579.92, while Hong Kong’s Hang Seng index also lost ground, trading 0.2% lower.
Japan’s markets performed strongly, with the Nikkei 225 rising by 1.14% to close at 38,487.9, and the broader Topix index gaining 1.7% to end at 2,772.49. In contrast, South Korea’s Kospi ended flat at 2,636.52, and the smaller-cap Kosdaq fell 0.96% to 839.98.
Australia’s S&P/ASX 200 index saw a robust gain, rising 0.96% to close at 7,701.7.
On Wall Street, the main indexes closed lower overnight as investors anticipated the release of key U.S. inflation data. The Dow Jones Industrial Average dropped 330.06 points, or 0.86%, while the S&P 500 and Nasdaq Composite declined by 0.6% and 1.08%, respectively.
The market is keenly awaiting the latest reading of the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. The April data, expected to be released on Friday, is anticipated to show an annual inflation rate of 2.7%, according to Dow Jones estimates.
