Asian Shares Mixed As China PMI Data Disappoints

(RTTNews) - Asian stocks ended on a mixed note Friday even as a downward revision to U.S. first-quarter GDP data revived hopes for Fed rate cuts this year.

Regional gains were capped by hawkish comments by New York Fed President John Williams and the release of sluggish PMI data from China.

The dollar steadied before Eurozone and U.S. inflation numbers, heading into next week's ECB meeting.

Gold was little changed in Asian trading while oil extended overnight losses ahead of an OPEC+ meeting to decide on supply cuts.

China's Shanghai Composite index slipped 0.16 percent to 3,086.81 after official surveys showed a weakening in Chinese factory and non-manufacturing activities in a surprise hit to the growth outlook.

The official manufacturing PMI fell from 50.4 to 49.5 in May, slipping into contraction after two months of expansion. The non-manufacturing PMI ticked down slightly from 51.2 to 51.1.

Hong Kong's Hang Seng index dipped 0.83 percent to 18,079.61.

Japanese markets rallied and the yen edged lower after data showed Japan's industrial output unexpectedly fell in April and the nation's jobless rate was unchanged.

Inflation in Tokyo accelerated in May, keeping the Bank of Japan largely on track to consider a rate hike in coming months.

The Nikkei average jumped 1.14 percent to 38,487.90 after the Nikkei financial news outlet reported that Japan is moving to steer nearly 100 trillion yen ($638 billion) more public money into active investing. The broader Topix index climbed 1.70 percent to 2,772.49.

Seoul stocks ended on a flat note, with the Kospi average ending up 1.08 points at 2,636.52 after the release of mixed economic data.

South Korea's industrial output rebounded in April following a sharp fall a month earlier, but retail sales and investment dropped for the second consecutive month, data showed.

Australian markets rose sharply to snap a three-day losing streak, with banks, mining and energy stocks leading the surge.

The benchmark S&P/ASX 200 rallied 0.96 percent to 7,701.70 while the broader All Ordinaries index closed up 0.95 percent at 7,970.80.

Telix Pharmaceuticals surged 15.3 percent to a record high after announcing positive clinical trial data.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index soared 2.68 percent to 11,867.29, hitting the highest level since early May after the government delivered modest tax relief and lowered new spending in its budget.

Meridian Energy surged 10.5 percent after it agreed a long-term fixed price power contract with New Zealand Aluminium Smelters.

U.S. stocks ended lower overnight as software giant Salesforce reported disappointing quarterly results and revised data showed the U.S. economy grew less than previously expected in the first quarter.

GDP grew 1.3 percent in the first quarter compared to the previously reported 1.6 percent jump.

Weekly jobless claims rose more than expected while pending home sales in April fell to their slowest pace since April 2020, separate set of data revealed.

The Dow shed 0.9 percent to reach its lowest closing level in almost a month, the S&P 500 dipped 0.6 percent and the tech-heavy Nasdaq Composite gave up 1.1 percent.