Asian markets were mixed on Friday as investors digested Japan’s inflation statistics and a surge in Chinese technology shares buoyed sentiment.
As of 9.38 hrs. local time in Thailand, the Nikkei 225 in Japan recovered from earlier losses to rise 0.20%.
In Australia, the S&P/ASX 200 was hovering near the flat line.
Hong Kong’s Hang Seng index rose 0.59% in early trade, and mainland China markets were higher. The Shanghai Composite gained 0.45% and the Shenzhen Component rose 0.16%.
Meanwhile, South Korea’s Kospi was 0.49% lower.
Core consumer prices in Japan grew 2.2% in June compared to the previous year, which was in line with analysts’ forecasts, according to statistics released Friday.
According to ING’s regional head of research, Robert Carnell, and senior economist Min Joo Kang, “June CPI data suggests that cost-push inflation has stabilized primarily due to a sharp decline in fresh food prices.”
It was also noted that, because inflation is not driven by consumer demand, the Bank of Japan is likely to remain accommodative in the coming months, even if the inflation rate rises to over 2.5% on a yearly basis. The core inflation rate, on the other hand, is expected to stay above 2 percent% for the rest of the year.
Japan’s central bank on Thursday kept rates on hold at ultra-low levels, as expected.