This is CNBC’s live blog covering the Asia-Pacific market.
Asia-Pacific markets are expected to be mostly higher on Friday as Asian investors focus on Bank of Japan policy decisions and inflation data from Tokyo.
Thirteen economists polled by Reuters unanimously expected the Bank of Japan to keep monetary policy unchanged. Still, traders will be watching to see what steps the central bank takes to address the weaker yen.
Tokyo’s headline inflation rate was 1.8% in April, slowing from 2.6% in March. Core inflation in the capital, which excludes fresh food prices, was 1.6%, down sharply from 2.4% in March and below the 2.2% forecast by economists polled by Reuters.
Tokyo’s inflation data is widely considered a leading indicator of national trends.
Japan’s Nikkei Stock Average is expected to recover from Thursday’s decline, with the index’s last close at 37,628.48, compared with 37,785 for Chicago futures and 37,820 for Osaka futures.
Hong Kong’s Hang Seng Index futures were at 17,318, which also indicates a strong opening compared to HSI’s closing price of 17,284.54.
However, Australia’s S&P/ASX 200 index is poised to recover from its holiday decline, with futures prices at 7,616 compared to the previous close of 7,683.
US stocks fell overnight after data showed a sharp slowdown in economic growth and sustained inflation.
According to the U.S. Bureau of Economic Analysis, U.S. gross domestic product (GDP) expanded by 1.6% in the first quarter. According to a survey of economists conducted by Dow Jones, GDP growth is expected to be 2.4%.
The report showed that as the growth rate slowed, the personal consumption expenditure price index rose at a pace of 3.4%, significantly higher than the 1.8% rise in the previous quarter.
The Dow Jones Industrial Average fell 0.98%, weighed down by sharp declines in Caterpillar and IBM. The S&P 500 fell 0.46%, and the Nasdaq Composite fell 0.64%.
—CNBC’s Brian Evans contributed to this report.
CNBC Pro: Goldman Sachs likes these two mobile gaming stocks with ‘blockbuster’ launches, giving one 40% upside potential
Investors seeking exposure to China’s growing gaming industry should focus on two technologies in particular, according to Goldman Sachs.
The investment bank predicts that “growth in China will accelerate from mid-2024, supported by game launches and a relaxed regulatory environment.”
Touching on corporate opportunities, the Wall Street bank hinted at opportunities in the second quarter of 2023, including “a quarter fueled by the launch of blockbuster titles.”
CNBC Pro subscribers can read more here.
— Amara Balakrishna
CNBC Pro: Should investors buy on Lululemon’s push?Here’s what the fund manager said:
Shares of the popular athleisure brand Lululemon have plummeted this year, leaving it far behind the S&P 500.
The company’s stock, which was included in Wall Street indexes only last October, has fallen about 28% since the beginning of the year.
Is that a good deal for investors right now? Jack Dwyer, CEO of Infusive Asset Management, also weighed in.
CNBC Pro subscribers can read more here.
— Tan Weizhen
The Fed’s recommended March inflation measure will be released on Friday.
The Personal Consumption Expenditure Price Index is scheduled to be released Friday morning, giving the Federal Reserve a detailed look at the latest inflation indicators.
According to the Dow Jones Economist Survey for March, overall PCE is expected to increase by 0.3% from the previous month and by 2.6% from 12 months ago. Core prices, excluding food and energy costs, are expected to rise 0.3% from the previous month and 2.7% from the previous year.
The first quarter gross domestic product report released on Thursday revealed that PCE rose 3.4% in the period, significantly outpacing the 1.8% rise in the fourth quarter. The results triggered a sell-off in stocks as investors worried about signs of stagflation, a scenario in which economic growth slows but inflation rises.
–Darla Mercado
