Asian markets traded mixed on Friday. Japan’s economy expanded by 1% year-on-year in Q2, exceeding expectations thanks to strong exports and capital spending. The Nikkei 225 gained 1%, approaching record highs, while the TOPIX rose 0.8%. The upside surprise may increase pressure on the Bank of Japan to tighten monetary policy.
Hong Kong’s Hang Seng Index fell 1.3% as weaker-than-expected July industrial output and retail sales underscored fragile consumer demand in China. Mainland benchmarks, however, gained modestly, with both the Shanghai Composite and CSI 300 up 0.5%.
Australia’s S&P/ASX 200 advanced 0.4% to a record high, while Singapore’s Straits Times Index dropped 0.9%. Markets in South Korea and India were closed for holidays.
On Wall Street, despite hotter U.S. producer prices, the S&P 500 notched another record close, with investors still pricing in a 25-basis-point Fed rate cut in September.