Asian markets see mixed results as Japan’s GDP weakens; Alibaba’s losses hurt Hong Kong shares

Asia stock markets showed little upward movement and some declines on Friday. Japan’s Nikkei faced pressure due to much worse-than-anticipated economic growth data, and Hong Kong’s Hang Seng was dragged down by substantial losses in Alibaba. Geopolitical risks also appeared to subside, with the India-Pakistan truce holding steady. Gold slipped to around $3,220 per ounce on Friday, on track for a weekly loss of over 3%, as easing global trade tensions weakened its appeal as a safe haven. Japan ( NKY:IND ) fell 0.09% to around 37,600 while the broader Topix Index lost 0.1% to 2,736 on Friday, with Japanese shares sliding for the third straight session. The Japanese yen appreciated toward 145 per dollar on Friday, rising for the fourth consecutive session despite weaker-than-expected economic growth figures. The Japanese economy contracted 0.2% quarter-on-quarter in Q1 , its first decline in a year and worse than the anticipated 0.1% drop. Japan’s industrial production increased by 0.2% month-over-month in March 2025, beating flash data of a 1.1% decline. The latest result followed a 2.3% rise in the previous month, marking the second straight month of growth. China ( SHCOMP ) fell 0.43% to below 3,370 while the Shenzhen Component lost 0.3% to 10,160 on Friday, with mainland stocks sliding for the second straight session as persistent concerns over US tariffs weighed on investor sentiment, the offshore yuan edged higher to around 7.21 per dollar on Friday, supported by a weakening US dollar amid soft economic figures. Meanwhile, investors now await key economic data due next week, including retail sales, unemployment rate, and updates to the loan prime rate, which could provide further insight into the health of the world’s second-largest economy. Hong Kong ( HSI ) fell 0.57% to 23,241 on Friday, posting a second straight session of losses amid declines across all sectors. Alibaba Group Hlds. tumbled 4.9% after reporting disappointing quarterly revenue . India ( SENSEX ) fell 0.32% to 82,320 in morning trade on Friday, halting gains from the previous day. On the domestic front, India’s trade deficit widened to its largest gap since November 2024, driven by a surge in imports. India’s Commerce Secretary Sunil Barthwal stated that the proposed trade agreement negotiations with the US are proceeding “very” well. Commerce Minister Piyush Goyal will lead an Indian delegation to Washington from May 17-20 for the next round of talks. Australia ( AS51 ) rose 0.47% to above 8,380 on Friday, marking its eighth straight session of gains and reaching its highest level in nearly three months. The Australian dollar stabilized above $0.64 on Friday, following a volatile week, as investors looked ahead to next week’s Reserve Bank of Australia policy decision. In the U.S., on Thursday, all three major indexes ended mixed as investors weighed earnings, economic data, and lingering trade uncertainty. U.S. stock futures were flat on Friday, following a fourth consecutive gain for the S&P 500 as optimism over the US-China trade deal and easing inflation pressures continued to support market sentiment: Dow -0.04% ; S&P 500 -0.03% ; Nasdaq -0.07% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan’s economy contracts 0.2% quarter-on-quarter in Q1 Japan’s producer prices rose 4% Y/Y in April, marks weakest pace since December Trump set to unveil trade deal with UK on Thursday – report China service growth hits 7-month low as trade disruptions weighs on new business orders Australia private sector expands at 51 in April, services sector expands for 15th straight month

Source: Seeking Alpha