This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets were mixed Friday as investors parsed Japan’s latest gross domestic product figures and awaited a slate of other economic data from the region.
Japan’s benchmark Nikkei 225 slipped 0.14%, while the Topix added 0.12% after Japan’s economy contracted 0.2% quarter-on-quarter for the three months ended March. Economists polled by Reuters had estimated a 0.1% economic contraction from the prior quarter.
The data comes at a time when the country is locked in trade negotiations with the U.S., with initial talks between both sides not yielding a conclusive deal so far.
A weak outcome for Japan’s GDP can weigh on the Bank of Japan’s rate hike pricing and push USD/JPY up towards resistance at 148.13, Commonwealth Bank of Australia wrote in a note. The Japanese yen is currently trading at 145.52 against the greenback.
Australia’s benchmark S&P/ASX 200 added 0.44%. South Korea’s Kospi rose 0.33% while the small-cap Kosdaq slipped 0.2%.
Hong Kong’s Hang Seng index slipped 0.66% while mainland China’s CSI 300 dipped 0.2%.
Hong Kong and Malaysia are also set to report GDP data later in the day.
U.S. stock futures near the flatline after the S&P 500 posted a four-day rally on the back of U.S. and China’s temporary tariff cuts and encouraging inflation reports. Futures tied to the Dow Jones Industrial Average added 32 points, or 0.08%. S&P 500 futures slipped 0.03%, while Nasdaq 100 futures inched down 0.07%.
Overnight stateside, the three major averages closed mixed. The S&P 500 climbed for a fourth session, adding to this week’s rally after the U.S. and China agreed to temporarily slash tariff rates. The broad market index rose 0.41% to end at 5,916.93, while the Dow Jones Industrial Average added 271.69 points, or 0.65%, and closed at 42,322.75.
The Nasdaq Composite underperformed, slipping 0.18% and settling at 19,112.32.
— CNBC’s Brian Evans and Scott Schnipper contributed to this report.
Alibaba shares listed in Hong Kong fall over 5% after profit miss
Alibaba shares listed in Hong Kong fell 5.5% on Friday after the Chinese e-commerce giant missed earnings expectations for its fiscal fourth quarter on both the top and bottom line.
This is how Alibaba did in its fiscal fourth quarter ended March versus LSEG estimates:
- Revenue: 236.5 billion Chinese yuan ($32.6 Billion), versus 237.2 billion yuan expected
- Net income: 12.4 billion yuan, compared 24.7 billion expected.
While falling short of analyst expectations, revenue was nevertheless up 7% year-on-year.
Alibaba’s net income was also still 279% higher year-on-year, off a low base. Alibaba said it saw some losses as a result of the disposal of some of its subsidiaries, which was offset by an increase in income from operations and changes to valuations of its equity investments.
—Arjun Kharpal, Lee Ying Shan
Japan’s economy contracts by a more than expected 0.2% from prior three months
Japan’s economy contracted 0.2% quarter-on-quarter for the three months ended March, a sharper fall than expected, preliminary government data showed Friday.
Economists polled by Reuters had expected a 0.1% contraction.
On an annualized basis, Japan’s GDP contracted 0.7% in the first quarter, also more than the 0.2% fall expected by the Reuters poll.
Read the full story here.
—Lim Hui Jie
S&P closes higher for fourth day
The S&P 500 closed higher for a fourth time on Thursday, aided by a soft inflation report and a drop in Treasury yields.
The broad market index added 0.41% to close at 5,916.93, while the Nasdaq Composite slipped 0.18% to 19,112.32. The Dow Jones Industrial Average added 271.69 points, or 0.65%, to finish the session at 42,322.75.
— Brian Evans
The bond market is at odds with optimism seen in equities, economist says
Fixed income investors are seeing a more concerning outlook than what the stock market is implying as Treasury yields remain stubbornly high, according to RSM chief economist Joseph Brusuelas.
“Given the risks to the economy—a recession is still a coin flip this year—and recovery in the equity markets, bond yields should be falling,” Brusuelas wrote in a Thursday note. “They are not, and that is because fixed-income investors are sniffing out the logic of economic populism amid a move toward trade protectionism, which strongly implies higher inflation and rising long-term yields.”
“Should Congress approve a large tax cut that is not paid for, don’t be surprised if the bond market pushes yields back toward mid-April highs, which captured the pushback against the trade conflict,” he added.
— Brian Evans
