Mixed Performance in Asia Markets as U.S. Inflation Data Falls Short of Expectations

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Asia-Pacific markets displayed a mixed performance on Friday following the release of softer-than-expected inflation data from the United States. This data raised hopes that inflation might decrease without negatively impacting the labor market.

In the U.S., the producer price index for June rose by a smaller-than-anticipated 0.1% year on year. Similarly, the core producer price index, which excludes volatile food and energy prices, also increased by 0.1%, falling below expectations.

Australia's S&P/ASX 200 index experienced a 0.26% climb as the government named central bank deputy governor Michele Bullock as the next governor for the Reserve Bank of Australia, succeeding Philip Lowe.

Japan's Nikkei 225 index reversed its earlier gains and declined by 0.3%, while the Topix index was down 0.5% ahead of the release of industrial production data for May. South Korea's Kospi index rose by 0.78%, while the Kosdaq index experienced a slight decrease.

Hong Kong's Hang Seng index witnessed a 0.95% increase in the first hour of trading, continuing the rally observed on Thursday. In mainland China, the Shanghai Composite index recorded a fractional decline, while the Shenzhen Component index rose by 0.12%.

Singapore's economy managed to avoid a technical recession as it registered growth in the second quarter. The Straits Times index saw a rise of 0.5%. In the U.S., all three major indexes extended their gains for the fourth consecutive day, with the S&P 500 and the Nasdaq Composite reaching their highest levels in over a year.

The S&P 500 index climbed by 0.85%, the Dow Jones Industrial Average added 0.14%, and the Nasdaq Composite showed the largest increase, rising by 1.58%.