Japan’s Nikkei 225 up more than 2%

SINGAPORE — Japanese stocks surged as trading resumed, while sAsia-Pacific hares were mixed on Friday after strong gains in the previous session as investors digested the US inflation report.

The Nikkei 225 jumped 2.4%, while the Topix index rose 1.86%. Japanese markets were closed on Thursday for a public holiday.

Japanese Prime Minister Fumio Kishida said on Friday he would ask his government to find ways to deal with rising fuel and food prices in the country, Reuters reported. Inflation in Japan is not as high as in other countries, but is above the central bank’s 2% target.

In Australia, the S&P/ASX 200 lost 0.75%.

But I think there are downside risks to growth, especially for China, and that, I think, will limit the overall market performance.

Eddy Lo

Chief Investment Officer, Maybank Group Wealth Management

The South Korean Kospi was flat, while the Kosdaq gained 0.12%.

Shares of Samsung Electronics rose 0.83% as South Korean President Yoon Suk-yeol formally pardoned the company’s Vice Chairman Jay Y. Lee.

“I will live up to the expectations of the country and the considerations of the government and the revitalization of the economy through sustained investment and the creation of jobs for young people,” Lee said, according to a CNBC translation.

Mainland Chinese markets fell. The Shanghai Composite lost 0.16% while the Shenzhen Component lost 0.23%.

China’s largest chipmaker, Semiconductor Manufacturing International Corporation, reported net profit of $514 million in the second quarter of 2022, down 25% from the same period a year ago. Revenue increased 42% to $1.9 billion.

Hong Kong-listed SMIC shares fell 1.58%. The broader Hang Seng Index was 0.32% higher.

MSCI’s broadest Asia Pacific ex-Japan equity index was flat.

The Thai market is closed for a holiday Friday.

“If you look at the valuation itself, Asian stocks are actually cheap. But I think there are downside risks to growth, especially for China and that I think will limit overall performance. market,” said Eddy Loh, Chief Investment Officer. Maybank Group Wealth Management officer, told CNBC’s “Squawk Box Asia” on Friday, explaining Maybank’s neutral stance on Asian stocks.

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Overnight in the US, major indices struggled to find direction before closing mixed.

The S&P 500 was slightly lower at 4,207.27, while the Nasdaq Composite lost 0.58% to 12,779.91. The Dow Jones rose slightly 27.16 points, or 0.08%, to 33,336.67. All three major averages opened the session higher but lost steam as the day progressed.

“Financial markets initially reacted positively to Producer Price Index data which showed US inflation moderating, but gains subsequently dwindled on fears the market may have -be overreacted,” according to a note from ANZ Research on Friday.

The July PPI fell 0.5% from June, versus an expected rise of 0.2%, according to a Dow Jones survey.

In corporate news, Credit Suisse has reportedly sought formal legal proceedings in the English High Court against Japanese tech firm SoftBank Group over a $440 million dispute.

But shares of SoftBank rose 6.25% on Friday after announcing it would add 4.6 trillion yen ($34.5 billion) to its pre-tax earnings by reducing its stake in the giant. Chinese technology Alibaba. The company said the move would “further strengthen our defense against the challenging market environment,” according to a press release.

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