Asian Shares Mixed After US, China Data

Asian shares turned in a mixed performance on Friday after the release of key U.S. and Chinese economic data.

A key U.S. inflation metric closely watched by the Federal Reserve increased at the slowest rate in nearly three years, fueling hopes for a Fed rate cut in June.
China reported mixed data, increasing pressure on policymakers to unveil more stimulus.

An official survey showed China’s factory activity shrank for the fifth straight month in February. The Caixin survey contrasted with the official data as both production and new orders grew faster in February.

The non-manufacturing activity expanded at a faster pace in the month, but home sales slump dragged on despite increased support from regulators to salvage the beleaguered property market.

China’s Shanghai Composite index rose 0.39 percent to 3,027.02 after a choppy session ahead of the annual gathering of the National People’s Congress next week, during which Beijing will announce the annual GDP growth target. Hong Kong’s Hang Seng index edged up 0.47 percent to 16,589.44.

Japanese markets hit a record high as tech-related stocks surged on expectations for a U.S. rate cut in June.

The Nikkei average rallied 1.90 percent to a new closing high of 39,910.82, while the broader Topix index settled 1.26 percent higher at 2,709.42.

Advantest, Screen Holdings and Tokyo Electron climbed 3-4 percent while AI-focused startup investor SoftBank Group added 1.3 percent.

Operating conditions in Japan’s manufacturing sector continued to deteriorate in February, while the unemployment rate remined steady at 2.4 percent in January, separate reports showed earlier today.

South Korean financial markets were closed for a public holiday.

Australian markets rose notably, led by mining, technology and energy stocks.

The benchmark S&P/ASX 200 rose 0.61 percent to 7,745.60 – hitting a record high for the second straight session. The broader All Ordinaries index closed 0.60 percent higher at 8,007.10.

Graphite producer Syrah Resources soared 13.1 percent after inked an offtake deal with South Korea’s Posco Future M.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index finished marginally higher at 11,744.39.

U.S. stocks fluctuated before finishing higher overnight as a slew of weak data eased rate concerns.

Weekly jobless claims rose more than expected and pending home sales posted a surprise drop in January while the Federal Reserve’s preferred inflation gauge edged lower on an annual basis in the month, matching expectations.

The tech-heavy Nasdaq Composite and the S&P 500 gained 0.9 percent and half a percent, respectively to reach new record closing highs while the Dow edged up 0.1 percent.

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