Investing.com - Asian stocks were mixed in Friday trade, as the Japanese economy contracted more than expected and regional markets reacted to comments from central bank officials in the U.S. and Europe.
During early Asian trade, Hong Kong's Hang Seng Index fell 0.67% to 19,912.80, Australia ’s S&P/ASX 200 Index climbed 0.75% to 4,219.69, while Japan’s Nikkei 225 Index slipped 0.28% to trade at 8,768.75.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange advanced 0.25% to 759.32.
Japan’s Cabinet Office released data Friday showing the country’s gross domestic product shrank by 0.5% in the April to June quarter, following a 0.3% contraction in the previous quarter.
The 0.5% decrease in Japanese GDP was in line with market expectations.
The Cabinet Office release showed that GDP for the quarter was down 2.1% from a year ago, revised from the initial 1.3% projected drop.
Earlier Thursday, Earlier Thursday, European Central Bank President Jean-Claude Trichet told reporters in Frankfurt that “looking ahead, we expect the euro area to grow moderately, subject to particularly high uncertainty and intensified downside risks.”
Trichet’s remarks were a likely indication that the ECB would not likely be introducing any additional interest rate hikes after two raises in April and July that set the lending rate at 1.5%.
Federal Reserve Bank Chairman Ben Bernanke said Thursday that the U.S. central bank would be discussing options available to support the economy, but fell short of spelling out specific proposals for growth.
Analysts had been looking at the Fed’ outlook on inflation as key to whether the U.S. central bank would be introducing a new round of quantitative easing.
Following Bernanke’s comments, Wall Street shares sagged to end the session lower, with the Dow Jones Industrial Average down 1.04%, the Nasdaq Composite Index fell 0.78%, and the S&P 500 declined 1.06%.
Thursday evening’s speech by U.S. President Barack Obama where he outlined a USD447 billion package to stimulate the U.S. economy appeared to have little effect on Asian markets, as details were largely within expectations.
Domestic demand issues led decliners in early trade in Tokyo, with Sumitomo Metal Industries down 1.2%, Mitsubishi Heavy Industries lower by 1.3%, and Komatsu Ltd. falling sharply by 3.1%.
In Sydney, energy companies supported gains in the morning session, as Woodside Petroleum Ltd. climbed 1.9% and Karoon Gas Australia Ltd. jumped 5.5%.
The outlook for European stocks was optimistic. France’s CAC 40 futures was higher by 0.52% to 3,072.30, Britain’s FTSE 100 futures rose 0.29% to 5,307.30, while Germany’s DAX futures was up 0.27% to 5,370.80.