SINGAPORE — Shares in the Asia-Pacific were mixed Friday as investors digest Japan’s inflation data.
The Nikkei 225 recovered from earlier losses to rise 0.4% and close at 27,914.66 and the Topix index climbed 0.28% to 1,955.97.
Official data released Friday showed that prices in Japan rose 2.2% in June compared to a year ago, in line with analysts’ expectations.
“June CPI data shows that cost-push inflation has stabilized, primarily due to a sharp decline in fresh food prices,” according to ING’s regional head of research, Robert Carnell, and senior economist Min Joo Kang in a Friday note.
“However, inflation is likely to accelerate again in the coming months due to the low base comparisons with last year and could exceed 2.5%YoY, while the core inflation rate will likely remain above 2% for the remainder of the year,” the note said, adding that the Bank of Japan is likely to stay accommodative since inflation is not demand driven.
Japan’s central bank on Thursday kept rates on hold at ultra-low levels, as expected.
South Korea’s Kospi was 0.66% lower at 2,393.14, and the Kosdaq fell 0.68% to 789.75.
In Australia, the S&P/ASX 200 was little changed at 6,791.5.
The Shenzhen Component slipped as much as 1.3% during the session but recovered some losses to close down 0.49% at 12,394.02.
MSCI’s broadest index of Asia-Pacific shares outside Japan was about flat.
Overnight in the U.S., the tech-heavy Nasdaq Composite rose 1.36% to close at 12,059.61 as Tesla shares surged. The S&P 500 gained nearly 1% to end the session at 3,998.95, and the Dow Jones Industrial Average advanced 162.06 points, or 0.51%, to 32,036.90.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.791 after falling from last week’s levels.