Asia report: Stocks mixed after latest US producer inflation data

Stock markets in the Asia-Pacific region ended mixed on Friday as investors weighed in on the latest inflation data from the United States.

The US producer price index (PPI) for April showed a 0.2% month-on-month increase, down from 0.4% in March and below the 0.3% economists had anticipated.

“Asian equities experienced mixed performance to close out the week, as a result of tepid earnings stateside and lingering concerns over US regional banks, with several names hitting circuit breakers during Wall Street trading,” said TickMill market analyst Patrick Munnelly.

“The subdued performance in the US, coupled with disappointing initial jobless claims, contributed to an overall negative risk sentiment.

“The Nikkei 225 outperformed, reaching its highest level since November, primarily driven by positive earnings results, particularly from prominent domestic blue-chip stocks.”

Munnelly noted that the Hang Seng and Shanghai Composite indices, meanwhile, displayed uncertainty, influenced by a number of factors.

“From a positive perspective, talks between US national security adviser [Jake] Sullivan and China's top diplomat Wang Yi hinted at a potential call between president Biden and Xi.

“However, investors were less impressed by weaker-than-anticipated Chinese loans and financing data.

“The scheduled meeting between president Biden and congressional leaders has been delayed until next week; house leader [Kevin] McCarthy was keen to state that the delay doesn't mean that debt talks are in peril.”

Stock markets mixed with Japan in the green

Japan's Nikkei 225 and Topix indices closed higher, with gains of 0.9% and 0.64% to 29,388.30 and 2,096.39, respectively.

Kobe Steel, Sumitomo Realty & Development, and Sapporo Holdings led the advances on Tokyo’s benchmark, with respective increases of 11.96%, 8.08%, and 6.74%.

In China, the Shanghai Composite was down 1.12% at 3,272.36, and the Shenzhen Component was off 1.23% at 11,005.64.

Inly Media and CSSC Steel Structure Engineering were among the biggest losers in Shanghai, with declines of 10.01% and 10%.

Hong Kong's Hang Seng Index ended the day down 0.59% at 19,627.24, with China Hongqiao, Xinyi Solar, and Country Garden Services experiencing losses of 6.92%, 3.3%, and 3.17%, respectively.

In South Korea, the Kospi was 0.63% weaker at 2,475.42, with Netmarble Games and DB Insurance witnessing declines of 10.46% and 5.79%, respectively.

Australia's S&P/ASX 200 closed slightly higher with a 0.07% gain to 7,256.70, led by Graincorp and Neuren Pharmaceuticals, which increased by 5.89% and 5.09%, respectively.

In New Zealand, the S&P/NZX 50 added 0.43% to 11,938.84, with the risers in Wellington including Serko, up 4.55%, and A2 Milk, which was ahead 2.84%.

In currency markets, the yen was last 0.19% weaker against the dollar at JPY 134.77, while the Aussie declined 0.15% to AUD 1.4942, and the Kiwi retreated 0.89% against the greenback to change hands at NZD 1.6019.

Oil markets were in the red, meanwhile, with Brent crude futures last falling 0.71% on ICE to $74.45 per barrel, and the NYMEX quote for West Texas Intermediate declining 0.62% to $70.43.

NZ manufacturing contraction slows, Malaysian economy beats forecasts

In economic news, New Zealand's manufacturing sector saw a continued contraction in April, although the rate of decline slowed slightly.

According to BusinessNZ, the manufacturing purchasing managers’ index (PMI) for the country rose to 49.1 from 48.1 in March.

A PMI reading above 50 points signifies expansion, while a reading below 50 denotes contraction.

In Malaysia, the country’s first quarter gross domestic product (GDP) growth topped expectations, rising 5.6% year-on-year.

Economists polled by Reuters had pencilled in an uptick of 4.8%.

The reading also represented an increase from the 4.8% growth observed in the same quarter last year.

On a seasonally-adjusted quarter-on-quarter basis, the Malaysian economy managed gains of 0.9%, swinging from a 1.7% contraction in the final quarter of 2022.

Reporting by Josh White for Sharecast.com.

NIKKEI 225 +261.58 (+0.9%) 29,388.30

RISERS
Kobe Steel +11.96% JPY 1,142.0
Sumitomo Realty & Development +8.08% JPY 3,372.0
Sapporo Holdings +6.74% JPY 3,960.0
Nissui +5.96% JPY 622.0
Nissan Motor +5.28% JPY 532.5

FALLERS
Casio Computer -6.36% JPY 1,252.0
Trend Micro -4.05% JPY 6,390.0
Tosoh Corporation -3.89% 1,705.0
SoftBank Group -3.68% 4,949.0
Idemitsu Kosan Co -3.16% JPY 2,970.0

SHANGHAI COMPOSITE -37.19 (-1.12%) 3,272.36

RISERS
Argus Shanghai Textile Chemicals +9.99% CNY 12.99
China TV Media +9.98% CNY 18.73
Huadian Power A +6.85% CNY 6.55
IReader Tech +6.73% CNY 31.70
CIG ShangHai A +5.91% CNY 58.46

FALLERS
Inly Media -10.01% CNY 12.86
CSSC Steel Structure Engineering -10% CNY 23.49
Anhui Transport -9.97% CNY 13.45
Hongda -9.86% CNY 3.20
China Film -9.37% CNY 17.50

HANG SENG INDEX -116.55 (-0.59%) 19,627.24

RISERS
JD.com +7.26% HKD 144.80
Baidu +3.03% HKD 119.10
Meituan +2.57% HKD 131.80
Alibaba Group +2.42% HKD 84.65
ANTA Sports Products +0.89% HKD 90.60

FALLERS
China Hongqiao -6.92% HKD 6.86
Xinyi Solar -3.3% HKD 7.62
Country Garden Services -3.17% HKD 11.00
Country Garden Holdings -3.09% HKD 1.88
Ping An Insurance -3.04% HKD 55.90

KOSPI 100 -11.28 (-0.46%) 2,434.90

RISERS
LG Innotek +3.88% KRW 281,000
SK Biopharma +3.45% KRW 71,900
Lotte Shopping +2.74% KRW 82,500
NH Invest +2.26% KRW 9,520
NCsoft Corporation +1.88% KRW 379,500

FALLERS
Netmarble Games -10.46% KRW 58,200
DB Insurance -5.79% KRW 78,100
E-Mart -4.32% KRW 86,300
LG Electronics -3.79% KRW 111,800
Hyundai Steel -3.6% KRW 34,850

S&P/ASX 200 +4.8 (+0.07%) 7,256.70

RISERS
Graincorp +5.89% AUD 8.27
Neuren Pharmaceuticals +5.09% AUD 14.05
Core Lithium +4.96% AUD 1.165
Nanosonics +3.7% AUD 5.60
Lendlease Group +3.16% AUD 8.16

FALLERS
Sandfire Resources -5.54% AUD 6.14
Champion Iron -3.73% AUD 6.20
Regis Resources -3.72% AUD 2.07
Nickel Industries -3.68% AUD 0.915
QBE Insurance Group -3.63% AUD 14.61

S&P/NZX 50 +51.08 (+0.43%) 11,938.84

RISERS
Serko +4.55% NZD 2.30
A2 Milk +2.84% NZD 5.79
Air New Zealand +2.63% NZD 0.78
Fletcher Building +2.14% NZD 4.78
Fisher & Paykel Healthcare +1.97% NZD 26.87

FALLERS
Eroad -3.7% NZD 0.52
Heartland Group -3.21% NZD 1.51
Mercury NZ -2.29% NZD 6.40
Sky Network Television -1.89% NZD 2.60
Stride Property -1.53% NZD 1.29