Asian Shares Mixed After Chinese Data

Asian stocks ended mixed on Friday as Trump tariff fears offset upbeat Chinese data and comments from Federal Reserve Governor Christopher Waller that officials could lower rates again in the first half of 2025 if inflation data continue to be favorable.

The dollar weakened in Asian trading, while oil and gold were poised for weekly gains.

China’s Shanghai Composite index reversed an early slide to end 0.2 percent higher at 3,241.82 after fourth quarter GDP beat estimates.

GDP expanded 5.4 percent year-on-year in the fourth quarter, faster than the 4.6 percent growth in the third quarter, the National Bureau of Statistics reported.

For the whole year of 2024, the economy expanded 5.0 percent, in line with the official growth target.

Separate data revealed that industrial production climbed 6.2 percent in December, while it was expected to log steady growth of 5.4 percent.

Retail sales improved an annual 3.7 percent, again topping expectations for 3.5 percent.

Fixed asset investment was higher by 3.2 percent year-on-year in 2024, shy of expectations for 3.3 percent. Property investment was down 10.6 percent in 2024 from the last year.

The jobless rate rose slightly to 5.1 percent in December from 5.0 percent in November.

Hong Kong’s Hang Seng Index edged up by 0.3 percent to 19,584.06. China Vanke shares tumbled 3.6 percent after state media reported the detention of its Chief Executive Officer Zhu Jiusheng.

Japanese markets fell slightly as the yen surged amid expectations of a Bank of Japan rate hike next week. Earlier this week, BoJ Governor Kazuo Ueda said that a hike was possible if economic and price conditions continue to improve.

The Nikkei 225 Index dipped 0.3 percent to 38,451.46, while the broader Topix Index settled 0.3 percent lower at 2,679.42. Videogame giant Nintendo slumped 4.3 percent as teaser for new console failed to impress.

Seoul stocks ended slightly lower a day after the Bank of Korea surprised markets by keeping its policy interest rate at 3.0 percent, contrary to widespread expectations of a 25-basis point cut. The Kospi slipped 0.2 percent to 2,523.55.

SK Hynix climbed 2.1 percent after Taiwan Semiconductor Manufacturing beat analyst estimates for the fourth quarter, thanks to strong sales of AI chips.

Australian markets ended lower as caution prevailed ahead of a U.S. holiday weekend and President-elect Donald Trump’s inauguration.

The benchmark S&P/ASX 200 Index ended down 0.2 percent at 8,310.40, dragged down by banks. The broader All Ordinaries Index edged down 0.1 percent to 8,557.40.

Rio Tinto shed 0.7 percent after reports suggested that it had held talks with Glencore last year about combining part or all of their businesses.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rallied 1 percent to 13,130.43, powered by heavyweight Fisher and Paykel Healthcare.

U.S. stocks succumbed to profit taking overnight a day after a benign inflation reading and strong bank earnings helped the three major indexes notch their biggest one-day percentage gain in over two months.

The tech-heavy Nasdaq Composite shed 0.9 percent, while the Dow and the S&P 500 both slid around 0.2 percent despite falling bond yields.

In economic news, retail sales growth slowed down more than expected in December and weekly jobless claims increased more than expected last week, while a gauge of manufacturing activity in the U.S. Mid-Atlantic region shot up by the most in about four-and-a-half years in January, a slew of data showed.

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