Asian markets mixed as Japan growth offsets China worries; oil slips ahead of US-Russia summit

Asian stock markets saw mixed performance on Friday, with stronger-than-expected Japanese growth offset by weak Chinese economic data, while oil prices edged lower ahead of a key summit between US President Donald Trump and Russian President Vladimir Putin.

Japan’s economy expanded by 0.3% in the April–June quarter, with the previous quarter’s output also revised upward—helping the world’s fourth-largest economy narrowly avoid a technical recession. This growth came despite US tariffs on Japanese imports, including cars, which make up 8% of Japan’s workforce.

In response, Tokyo’s Nikkei 225 rose 0.9% to 43,036.46 in morning trade. Shanghai (+0.3%), Seoul, and Sydney also posted modest gains. However, Hong Kong’s Hang Seng Index fell 1.1% to 25,236.62, dragged down by disappointing Chinese retail and industrial output figures.

Weighed by long-standing property sector troubles and high youth unemployment, Chinese consumer sentiment remains fragile. The ongoing US-China trade war continues to worsen economic pressures.

On Wall Street, US stocks ended flat Thursday after stronger-than-expected wholesale inflation dampened hopes for an aggressive interest rate cut by the Federal Reserve. A quarter-point cut is still expected, but a larger 50-basis-point move is likely off the table, according to Jack Ablin of Cresset Capital.

Meanwhile, Intel surged 7.4% after reports surfaced that President Trump may invest in the struggling chipmaker in exchange for a government stake.

Oil prices slipped as traders eyed Friday’s summit in Alaska between Trump and Putin, focused on resolving the Ukraine war. Markets fear failed diplomacy could trigger tighter sanctions on Russian oil, reducing global supply.

“If the meeting doesn’t go well, we’ll see stronger sanctions on Russian oil, making it much more difficult for this oil to get to market,” said Stephen Schork of the Schork Group.

Key figures as of 0230 GMT

Asian Markets:

Tokyo – Nikkei 225: UP 0.9% at 43,036.46

Hong Kong – Hang Seng: DOWN 1.1% at 25,236.62

Shanghai – Composite: UP 0.3% at 3,675.05

Currencies:

Euro/Dollar: UP at $1.1658 from $1.1657

Pound/Dollar: UP at $1.3543 from $1.3535

Dollar/Yen: DOWN at ¥147.28 from ¥147.76

Euro/Pound: UP at 86.06 pence from 86.05

Oil Prices:

WTI Crude: DOWN 0.2% at $63.84 per barrel

Brent Crude: DOWN 0.1% at $66.76 per barrel

Major Western Markets (Thursday close):

New York – Dow Jones: DOWN <0.1% at 44,911.26

London – FTSE 100: UP 0.1% at 9,177.24