Asia markets mixed; Japan rises on strong GDP, Hong Kong falls on weak China data

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Asia shares mostly rise on Friday, despite a string of weaker-than-expected economic reports in China and stronger-than-expected Japan GDP data. Trading volumes remaining thin due to public holidays in South Korea and India.

On the geopolitical front, US President Donald Trump and Russian President Vladimir Putin are set to meet in Alaska later Friday in a bid to end the war in Ukraine.

Silver prices held below $38 per ounce on Friday after tumbling more than 1% in the previous session.

Gold prices hovered below $3,340 per ounce on Friday, retaining losses from the previous session and on track for its worst week since late June.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 1.64% to above 42,800, while the broader Topix Index advanced 0.75% to 3,080 on Friday, rebounding from the prior session’s losses. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] firmed toward 147 per dollar on Friday, erasing the prior session’s losses, amid stronger-than-expected GDP data and rising expectations for a Bank of Japan rate hike.

Japan's economy grew by 0.3% in the second quarter [https://seekingalpha.com/news/4485858-japans-economy-accelerates-by-03-in-q2-beating-forecasts], marking an acceleration from the 0.1% growth seen in the first quarter. The Q2 result exceeded the consensus forecast, signaling stronger-than-expected economic momentum.

JAPAN’S INDUSTRIAL PRODUCTION rose 2.1% month-over-month in June 2025, topping flash data of 1.7% and reversing from a 0.1% fall in the previous month, and marks the first increase since March and the fastest pace in four months

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.82% to around 3,670, while the Shenzhen Component climbed 0.7% to 11,530 on Friday, rebounding from the prior session’s losses, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] edged lower to around 7.18 per dollar on Friday, as investors weighed a batch of disappointing economic data.

Industrial output growth slowed to a seven-month low in July [https://seekingalpha.com/news/4485862-chinas-economy-slows-as-industrial-production-retail-sales-both-miss-targets-jobless-rate-climbs-to-52-in-july], down from a recent three-month peak and falling short of market expectations. Adding to investor concerns, retail sales growth weakened to a six-month low, while the unemployment rate inched up to its highest level in four months.

China’s fixed-asset investment increased by 1.6% year-on-year in January–July 2025 period, much less than market expectations of a 2.7% rise, compared to the 2.8% growth in the first six months.

Meanwhile, China’s new home prices in 70 cities contracted at a softer pace in July. Although this marked the 25th consecutive month of decline, it was the slowest rate of decline since March 2024.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) fell 1.27% to 25,192 in early Friday trade, extending losses for the second session as most sectors declined, led by financials, tech, and consumer shares.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) market closed. India's Prime Minister Narendra Modi on Friday announced that the nation will implement reforms to the Goods and Services Tax in the coming months. In his Independence Day address, Modi promised that the changes would provide substantial tax relief on everyday goods, raising hopes of a major cut in GST rates ahead of the festive season.

Total passenger vehicle sales in India increased by 1.5% year-on-year to a four-month high of 301,251 units in July 2025, recovering from a 6.3% fall in the previous month, according to data from the Society of Indian Automobile Manufacturers.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 0.64% to around 8,890 on Friday, extending gains from the previous session to remain near record highs, led mainly by strength in energy stocks. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] held its decline around $0.649 on Friday.

Meanwhile, in Australia, investor sentiment remained cautious ahead of key data releases next week, including consumer inflation expectations, consumer confidence, and several PMI surveys, especially after recent employment figures indicated continued strength in the labor market.

In the U.S., on Thursday, all three major indexes ended mixed [https://seekingalpha.com/news/4485438-sp500-nasdaq-composite-dow-jones-stock-market-news-inflation] amid hotter-than-expected wholesale inflation data curbed optimism for a large Federal Reserve rate cut in September.

The Trump administration is reportedly in talks with Intel about the U.S. government potentially taking a stake in the struggling chipmaker, Bloomberg News said.

U.S. stock futures held steady Friday after a muted Wall Street session, as hotter-than-expected wholesale inflation tempered hopes for a large Federal Reserve rate cut in September: Dow +0.71%; S&P 500 +0.20%; Nasdaq +0.01%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

Japan's economy accelerates by 0.3% in Q2, beating forecasts [https://seekingalpha.com/news/4485858-japans-economy-accelerates-by-03-in-q2-beating-forecasts#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's economy slows as industrial production, retail sales both miss targets; Jobless rate climbs to 5.2% in July [https://seekingalpha.com/news/4485862-chinas-economy-slows-as-industrial-production-retail-sales-both-miss-targets-jobless-rate-climbs-to-52-in-july#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's unemployment rate drops to 4.2% in July [https://seekingalpha.com/news/4485123-australia-unemployment-rate-drops-to-42-in-july#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's central bank cuts interest rates to 3.6%, lowest level since April 2023 amid moderating inflation and cautious outlook [https://seekingalpha.com/news/4483645-australias-central-bank-cuts-interest-rates-to-36-lowest-level-since-april-2023-amid-moderating-inflation-and-cautious-outlook#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's consumer prices remain flat, beats forecasts; producer prices contract for 34th month [https://seekingalpha.com/news/4482989-chinas-consumer-prices-remain-flat-beats-forecasts-producer-prices-contract-for-34th-month#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]