SINGAPORE — Japanese stocks rose in return, while sAsia-Pacific hares were mixed on Friday after strong gains in the previous session as investors digested the US inflation report.
The Nikkei 225 rose 2.4%, while the Topix index rose 1.86%. Japanese markets were closed on Thursday for a holiday.
Japan’s Prime Minister Fumio Kishida said on Friday that he will ask his government to find ways to address rising fuel and food prices in the country, Reuters reported. Inflation in Japan is not as hot as in other countries, but is above the central bank’s 2% target.
In Australia, the S&P/ASX 200 was down 0.75%.
But I think there are downside risks to growth, particularly for China and that, I think, will keep a lid on overall market performance.
Chief Investment Officer, Maybank Group Wealth Management
South Korea’s Kospi was flat, while the Kosdaq added 0.12%.
Samsung Electronics shares rose 0.83% after South Korean President Yoon Suk-yeol officially pardoned the company’s vice chairman Jay Y. Lee.
“I will live up to the expectations of the country and the considerations of the government and the revitalization of the economy through sustained investment and job creation for the youth,” Lee said, according to a translation by CNBC.
Markets in mainland China fell. The Shanghai Composite lost 0.16% while the Shenzhen Composite lost 0.23%.
China’s largest chip maker, Semiconductor Manufacturing International Corporation, reported a net profit of $514 million in the second quarter of 2022, a 25% drop from the same period a year earlier. Revenue grew 42% to $1.9 billion.
Shares of Hong Kong-listed SMIC fell 1.58%. The broader Hang Seng Index was 0.32% higher.
The broadest index of Asia-Pacific shares outside Japan was flat.
The market in Thailand is closed for a public holiday on Friday.
“If you look at the valuation itself, Asian stocks are actually not expensive. But I think there are downside risks to growth, particularly for China and that, I think, will keep a lid on overall market performance Eddy Loh, Chief Investment Officer. Maybank Group Wealth Management official told CNBC’s “Squawk Box Asia” on Friday, explaining Maybank’s neutral stance on Asia stocks.
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Overnight in the US, major indexes struggled for direction before closing mixed.
The S&P 500 was fractionally lower at 4,207.27, while the Nasdaq Composite fell 0.58% to 12,779.91. The Dow rose 27.16 points, or 0.08%, to 33,336.67. All three major averages opened the session higher, but lost strength as the day progressed.
“Financial markets initially reacted positively to producer price index data showing that US inflation is moderating, but gains were pared after concerns that the market may have reacted from excessive manner,” according to a note from ANZ Research on Friday.
July’s PPI fell 0.5 percent from June, compared with an expected 0.2 percent increase, according to a Dow Jones survey.
In corporate news, Credit Suisse has reportedly requested to initiate formal legal proceedings in the English Supreme Court against Japanese technology company SoftBank Group over a $440 million dispute.
But SoftBank shares rose 6.25 percent on Friday on news that it would add 4.6 trillion yen ($34.5 billion) to its pre-tax earnings by reducing its stake in Chinese tech giant Alibaba . The company said the move would “further strengthen our defense against the severe market environment,” according to a press release.
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