Asian stocks were a mixed bag on Friday, with Chinese shares extending their stellar performance through August and remaining at recent multi-year peaks, while Japan’s Nikkei 225 retreated on a swathe of negative economic readings.
Regional markets took some encouragement from a mildly positive overnight close on Wall Street, where the S&P 500 hit a record high.
But overall gains in Wall Street were limited by caution over NVIDIA Corporation (NASDAQ:NVDA), which clocked somewhat middling earnings, and as investors awaited key PCE price index data– the Federal Reserve’s preferred inflation gauge– later on Friday.
S&P 500 Futures fell 0.1% in Asian trade.
Most Asian markets were sitting on gains through August, as the second-quarter earnings season delivered and as investors welcomed the prospect of lower U.S. interest rates.
Chinese markets, however, were by far the best performers in the region.
Chinese stocks upbeat after stellar August
China’s Shanghai Shenzhen CSI 300 index rose 0.7% to a three-year high, while the Shanghai Composite index rose 0.4% and was just below a 10-year peak. Hong Kong’s Hang Seng index rose 0.7% and was close to a recent four-year high.
Mainland Chinese stocks vastly outperformed their regional peers in August, with the CSI 300 up 10.3% this month, while the Shanghai Composite was set for a 8.1% gain.
Chinese markets were encouraged by increasing efforts by Beijing to promote local chip production, while signs of continued softness in the economy ramped up bets that the government will dole out even more stimulus measures.
Source : Investing.com