Asia report: Markets finish mixed ahead of US GDP reading

(Sharecast News) - Asia-Pacific markets closed with mixed results on Thursday following two consecutive days of gains, in line with movements on Wall Street. Investors were cautious ahead of the release of first-quarter gross domestic product figures from the US later in the global day.

"Asian stock markets are trading with mixed results on Thursday, following the uncertain signals from Wall Street overnight as Meta earnings failed to impress after hours, causing a late sell-off," said TickMill market analyst Patrick Munnelly.

"Traders are exercising caution as they await the report on first quarter US GDP data, which could potentially influence the outlook for interest rates.

"While the Fed is anticipated to maintain interest rates at next week's US Fed monetary policy meeting, traders are keen to gather hints about the likelihood of future rate cuts."

Markets mixed after recent global rally

In Japan, the Nikkei 225 index declined by 2.16% to 37,628.48, while the Topix fell by 1.74% to 2,663.53.

Leading the losers on Tokyo's benchmark was Tokyo Gas Co, down 9.57%, followed by Canon with a fall of 8.42%, and Hino Motors, which lost 5.96%.

On the mainland, Chinese markets showed slight gains, with the Shanghai Composite rising by 0.27% to 3,052.90 and the Shenzhen Component increasing by 0.14% to 9,264.48.

Leading the risers in Shanghai was ARTS Group, up 9.98%, and IReader Technology, which advanced 7.56%.

In Hong Kong, the Hang Seng Index edged up by 0.48% to 17,284.54, led higher by China Overseas, up 6.26%; CSPC Pharmaceutical Group, ahead 4.82%; and China Hongqiao Group, which added 3.85%.

South Korea's Kospi index recorded a decline of 1.76% to 2,628.62, with the biggest losers including SK Square, down 9.01%, and Doosan Bobcat, losing 7.23%.

Meanwhile, markets in Australia and New Zealand were closed for the ANZAC Day public holiday.

In currency markets, the dollar was last 0.2% stronger on the yen, trading at JPY 155.66, while it weakened against its Australian and New Zealand counterparts, down 0.48% to AUD 1.5315 and 0.46% to change hands at NZD 1.6768, respectively.

On the oil front, Brent crude futures were last up 0.37% on ICE at $88.35 per barrel, while the NYMEX quote for West Texas Intermediate increased 0.36% to $83.11.

Korean economy shoots past expectations in first quarter

In economic news, South Korea's economy surged ahead in the first quarter, defying expectations and marking its strongest quarterly growth since the end of 2021.

According to fresh data, the country's gross domestic product (GDP) expanded by 3.4%, outpacing the 2.4% forecast by economists surveyed by Reuters.

Quarter-on-quarter, GDP rose 1.3%, surpassing Reuters' projected 0.6% increase.

The upbeat figures were largely attributed to a boost in exports, particularly in the IT sector.

Exports climbed by 0.9%, driven by higher shipments of items like cellular phones.

However, the positive export figures were partially offset by a decline in imports, which contracted by 0.7%, primarily due to reduced imports of electronic equipment.

Reporting by Josh White for Sharecast.com.