SINGAPORE — Shares in the Asia-Pacific region were mixed on Friday as investors processed Japan’s inflation data.
The Nikkei 225 rebounded from earlier losses, rising 0.4 percent to close at 27,914.66, and the Topix rose 0.28 percent to 1,955.97.
Official data released on Friday showed that prices in Japan rose 2.2 percent in June from a year ago, in line with analysts’ expectations.
“June consumer price index data showed that expenditure-led inflation stabilized, mainly due to a sharp decline in fresh food prices,” according to ING regional head of research Robert Carnell and senior economist Ming Ju Kang in a note on Friday note.
“However, inflation is likely to accelerate again in the coming months due to low baseline comparisons with last year and may exceed 2.5% year-on-year, while core inflation is likely to remain above 2% for the rest of the year,” it said the note said, adding that Japan’s central bank is likely to remain accommodative as inflation is not driven by demand.
The Bank of Japan on Thursday kept interest rates at ultra-low levels, as expected.
Asia Pacific markets are mixed
South Korea’s Kospi was 0.66 percent lower at 2,393.14 and the Kosdaq fell 0.68 percent to 789.75.
In Australia, the S&P/ASX 200 was little changed at 6,791.5.
Hong Kong’s Hang Seng rose 0.12 percent in the final hour of trade, but mainland Chinese markets gave up earlier gains to fall, with the Shanghai Composite slightly lower at 3,269.97.
Shenzhen Component fell as much as 1.3% in the session, but recovered some losses to close up 0.49% at 12,394.02.
MSCI’s broadest index of Asia-Pacific shares outside Japan was almost unchanged.
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Overnight in the US, the tech Nasdaq Composite rose 1.36% to close at 12,059.61 as Tesla shares jumped. The S&P 500 gained nearly 1 percent to end the session at 3,998.95, and the Dow Jones Industrial Average advanced 162.06 points, or 0.51 percent, to 32,036.90.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of peers, was at 106.791 after falling from last week’s levels.
The Japanese yen traded at 137.61 per dollar, strengthening from recent levels above 138 against the greenback. The Australian dollar was at $0.6917, up from below $0.6880.
U.S. crude futures rose 1.05 percent to $97.36 a barrel in Asian trade, while Brent crude rose 1.13 percent to $105.03 a barrel.
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