Asian Shares Mixed Ahead Of US PCE Inflation Data

(RTTNews) - Asian stocks ended mixed on Friday as caution prevailed ahead of a key U.S. inflation report due later in the day that might show core personal consumption expenditures prices rose 2.9 percent in July, the fastest pace in five months.

Recent strong U.S. economic data soothed recession jitters but also fueled concerns about persistent inflation amid geopolitical factors like the Russian-Ukraine conflict.

Analysts say that a higher-than-expected print may not take a September rate cut off the table.

Federal Reserve Governor Christopher Waller on Thursday said he wants to start cutting U.S. interest rates next month.

China's Shanghai Composite index rose 0.37 percent to 3,857.93, extending its stellar performance through August driven by increased domestic liquidity.

Hong Kong's Hang Seng index edged up by 0.32 percent to 25,077.62 ahead of earnings reports from several heavyweights.

Japanese markets ended slightly lower due to profit taking on the final day of the month.

The Nikkei average dipped 0.26 percent to 42,718.47, pressured by a strong yen and some weak economic readings, with factory output falling more than expected last month and retail sales growth coming in below estimates.

The broader Topix index settled 0.47 percent lower at 3,075.18. Automakers led losses, with Honda Motor and Toyota Motor falling 1.3 percent and 1.6 percent, respectively.

Seoul stocks ended lower due to foreign selling. The Kospi average slipped 0.32 percent to 3,186.01.

Australian markets ended on a flat note but notched their best August performance in sixteen years as the corporate earnings season wrapped up.

Across the Tasman, New Zealand's benchmark S&P/NX-50 index edged up by 0.21 percent to 12,930.73, extending gains from the previous session.

Gold was poised for a monthly gain on a softer dollar and Fed rate cut hopes, while oil prices were moderately higher for the week.

U.S. stocks rose overnight as traders reacted to highly anticipated earnings news from AI darling Nvidia and data showing a surprise rise in the second-quarter gross-domestic product estimate.

Real GDP shot up by 3.3 percent in the second quarter compared to the previously reported 3.0 percent surge, primarily reflecting upward revisions to investment and consumer spending.

Separate data showed U.S. jobless claims fell to 229000 last week, signalling low layoffs.

The S&P 500 added 0.3 percent to reach another new record closing high while the Dow edged up 0.2 percent and the tech-heavy Nasdaq Composite gained half a percent.