Asian stocks mixed, investors assess strong Japanese data

Nikkei 225 dropped 0.4%, the broader TOPIX index added 0.5%, S&P/ASX 200 jumped 1.1%, while Straits Times Index rose 0.6%

Asian stocks were mixed on Tuesday, while investors assessed stronger-than-expected Japanese economic growth data and monitored developments in the Middle East war.

Japan’s economy expanded an annualised 2.1% in the first quarter, above forecasts for 1.7% growth, supported by firmer private consumption and external demand.

Capital expenditure increased 0.3% quarter-on-quarter, while the GDP price index rose 3.4%, underscoring persistent inflation pressures.

Still, analysts expect that GDP growth will grind to a halt this quarter and next.

Nikkei 225 dropped 0.4%, while the broader TOPIX index added 0.5%.

S&P/ASX 200 jumped 1.1%, and Straits Times Index rose 0.6%.

However, most major stock markets were subdued, with tech shares leading losses.

China’s blue-chip Shanghai Shenzhen CSI 300 declined 0.6%, while the Shanghai Composite index traded flat. Hang Seng index also traded largely unchanged.

KOSPI index traded 3% lower, after slipping as much as 5% earlier in the session.

Samsung Electronics shares slid more than 5% as the company and its labour union resumed negotiations on Tuesday after talks a day earlier failed to produce an agreement.

Brent crude slid from recent highs above $110 per barrel, although prices remained elevated amid continued supply disruptions in the Strait of Hormuz.

Elsewhere, U.S. stock market’s technology-heavy Nasdaq closed lower overnight amid inflation concerns from elevated oil prices.

U.S. stock index futures also edged lower in Asian trading on Tuesday.

AI-linked chip stocks also faced profit-taking ahead of quarterly earnings from Nvidia due on Wednesday, seen as a major test for the sustainability of the artificial intelligence-driven rally.