Asian stocks closed mostly positively, taking cues from the direction of the US stock market. While some regional markets experienced slight declines, others remained resilient amid various economic factors.
In Australia, the S&P/ASX 200 closed at 7,118.00, down 11.60 points or -0.16%. The All Ordinaries also experienced a minor dip, closing at 7,310.40, down 9.50 points or -0.13%. The Australian market reacted to lower-than-expected gross domestic product (GDP) growth in the first quarter of 2023, attributed to rising interest rates and inflationary pressures.
Tokyo’s Nikkei, on the other hand, closed at 31,913.74 points, down 593.04 points or -1.82%. This marked the end of a four-day winning streak as investors booked profits from technology stocks and other sectors. The Nikkei had reached a 33-year high in the previous trading session.
China’s Shanghai Composite experienced a modest gain, closing at 3,197.76 points, up 2.42 points or +0.08%. The positive sentiment stemmed from expectations that the Chinese government would introduce stimulus measures to support the economy.
South Korea’s Composite Index (KOSPI) closed nearly unchanged at 2,615.60, up 0.19 points or 0.01%. Investors closely monitored the release of the Consumer Price Index (CPI) and Producer Price Index (PPI), as well as the upcoming monetary policy meeting of the Federal Reserve (Fed) next week.
Meanwhile, Hong Kong’s Hang Seng ended on a positive note at 19,252.00, up 152.72 points or +0.80%. Expectations of stimulus measures from the Chinese government provided a boost to the market. Recent data indicating weaknesses in the Chinese economy, such as a decline in new house prices in May and a significant drop in exports, prompted hopes for government intervention.
Overall, the Asian stock market displayed a mix of performances, responding to both local and global economic indicators. Investors remained attentive to developments in the US market and key upcoming events, such as central bank meetings and economic data releases.