- Japan’s industrial production rose 2.8 percent in May from the previous month, beating the 2 percent forecast by economists polled by Reuters.
- Headline inflation in Japan’s capital, Tokyo, accelerated to 2.3% year-on-year in June from 2.2% in May.
- The yen hit a 38-year low against the dollar, falling to 161.27 yen per dollar.
Asia-Pacific markets rose on Friday as investors assessed key economic data from Japan and awaited U.S. inflation readings later in the day.
The Japanese yen hit a 38-year low against the dollar, falling to 161.27 yen to the dollar. Japan has appointed Atsushi Mimura to replace Masato Kanda as its head of foreign exchange, according to the Nikkei newspaper.
Headline inflation in Japan’s capital Tokyo accelerated to 2.3% year-on-year in June, up from 2.2% in May. Core inflation, which excludes fresh food prices, rose to 2.1% from 1.9% in May.
Tokyo inflation data is widely considered a leading indicator of national trends.
The country’s industrial production rose 2.8 percent in May from the previous month, beating the 2 percent forecast by economists polled by Reuters, and rose 0.3 percent year-on-year.
Both figures give Japan room to tighten monetary policy at a time when the yen has plummeted to its lowest in decades.
South Korea’s retail sales fell 0.2% in May from a year earlier, narrowing the decline from a revised 0.8% drop in April. It was the first time since July 2023 that South Korea has recorded two consecutive months of declines.
Japan’s Nikkei stock average rebounded 1.04% after the data was released, while the Tokyo Stock Price Index rose 0.84%.
South Korea’s KOSPI rose 0.13%, while the small-cap KOSDAQ added 0.1%.
Hong Kong’s Hang Seng Index rose slightly, while mainland China’s CSI 300 rebounded from a four-month low to rise 0.11%.
Australia’s S&P/ASX 200 rose 0.63%.
Overnight in the US, the S&P 500 was only slightly higher as Wall Street closely watched new inflation data to gauge when the Federal Reserve might start cutting interest rates.
The United States is expected to release its key inflation gauge, personal consumption expenditures, on Friday.
The Composite Index closed up 0.09%, the Nasdaq Composite Index rose 0.30% and the Dow Jones Industrial Average added 0.09%.
—CNBC’s Hakyung Kim and Sarah Min contributed to this report.
