Asia stocks mixed: Japan climbs on robust Q2 GDP; HK drops after weak China data

Investing.com-- Asian stock markets were mixed on Friday, with Japan shares rising on robust second-quarter economic growth, while Hong Kong shares declined as weak Chinese factory output and retail sales data weighed.

Markets in South Korea and India were closed for public holidays, leading to thin trading volumes.

Wall Street closed largely unchanged on Thursday after hot producer price figures tempered expectations of an outsized Federal Reserve rate cut next month.

Still, the S&P 500 hit a fresh record high, as a quarter-point cut was still largely priced in for September.

Major U.S. stock index futures were mixed in Asia hours, with Dow Jones futures rising

Japan Q2 GDP expands 1% y/y; Nikkei near record highs

Tokyo’s Nikkei 225 index jumped 1% Friday, hovering near Wednesday’s record high of 43,451 points.

Japan’s broader TOPIX index also rebounded 0.8% after hitting record highs earlier this week.

Data on Friday showed that Japan’s economy expanded more than expected in the second quarter, as exports and capital spending remained resilient despite U.S. tariff pressures during the period.

GDP grew 1% year-on-year in the April–June quarter, up from the upwardly revised 0.6% in the first quarter, and was also well above the 0.4% anticipated. 

The stronger-than-expected outcome may bolster the case for the Bank of Japan to consider further tightening.

Chinese data disappoints; Hong Kong stocks drop over 1%

In China, data showed that industrial production in July fell short of expectations as overseas demand waned following earlier front-loading due to U.S. tariffs.

Retail sales figures from the world’s second-largest economy also came in below expectations in July amid weakness in consumer spending.

Hong Kong’s Hang Seng slipped 1.3% on Friday.

In Mainland China, the Shanghai Composite index gained 0.5%, while the Shanghai Shenzhen CSI 300 also rose 0.5%. 

Elsewhere, Australia’s S&P/ASX 200 gained 0.4% to a fresh record high.

Meanwhile, Singapore’s Straits Times Index declined 0.9%.