Asia-Pacific Markets Mixed as U.S. Inflation Data Sparks Optimism
Tokyo, Japan – Asia-Pacific markets experienced mixed results on Friday as new U.S. inflation data raised hopes that inflation could decrease without negatively impacting the labor market.
In Japan, the Nikkei 225 index reversed earlier gains and fell 0.3%, while the Topix was down 0.5% ahead of the release of its May industrial production data. South Korea’s Kospi index rose 0.78%, but the Kosdaq inched lower.
Hong Kong’s Hang Seng index saw a gain of 0.95% in its first hour of trade, extending the rally seen on Thursday. However, in mainland China, the Shanghai Composite fell slightly, while the Shenzhen Component rose 0.12%.
Australia’s S&P/ASX 200 index climbed 0.26% following the announcement that Michele Bullock, the Deputy Governor of the country’s central bank, would succeed Philip Lowe as the next Governor of the Reserve Bank of Australia.
Meanwhile, Singapore’s economy managed to avoid a technical recession as it grew in the second quarter of the year. The Straits Times index rose 0.5% in response to the positive economic news.
The mixed performance in Asia-Pacific markets came after the release of U.S. producer price index data, which showed a smaller-than-expected increase of 0.1% year on year in June. The core PPI, which excludes volatile food and energy prices, also rose 0.1%, falling short of expectations.
On Wall Street, all three major indexes recorded a fourth consecutive day of gains. The S&P 500 and the Nasdaq Composite closed at their highest levels in over a year, climbing 0.85% and 1.58%, respectively. Meanwhile, the Dow Jones Industrial Average added 0.14%.
The positive performance in U.S. markets, combined with the softer inflation data, buoyed investor optimism that inflation could decrease without harming the labor market.