Asian Shares Mostly Lower As Investors Look For Clarity On Tariff Impact

(RTTNews) - Asian stocks ended mostly lower on Friday as Japanese GDP data disappointed and investors awaited clarity on how the global economy would be impacted by U.S. tariffs on its trading partners.

The U.S. dollar tracked Treasury yields lower as a string of softer-than-expected U.S. economic data prints released on Thursday fueled hopes for more rate cuts from the Federal Reserve in coming months.

Gold prices fell nearly 1 percent toward $3,200 per ounce as trade worries ebbed. Oil held steady but was on track for a weekly gain due to optimism surrounding a potential trade agreement between the United States and China.

China's Shanghai Composite index dropped 0.40 percent to 3,367.46, with earnings and U.S. tech restrictions in focus.

Reuters reported that the U.S. Commerce Department is considering placing more Chinese companies, including Changi Memory, on its restricted export list.

Hong Kong's Hang Seng index ended down 0.46 percent at 23,345.05. E-commerce giant Alibaba Group Holding slumped 4.1 percent after posting disappointing earnings, reflecting pressure on Chinese consumers.

Japanese markets ended on a flat note as new data showed Japan's economy contracted an annualized 0.7 percent in the first quarter of 2025, marking the first contraction in four quarters.

The Nikkei average finished marginally lower at 37,753.72 while the broader Topix index ended with a positive bias at 2,740.45.

Seoul stocks eked out modest gains, with food and defense stocks pacing the gainers. The Kospi average edged up by 0.21 percent to close at 2,626.87.

Samyang Food soared 19 percent on its record-breaking first-quarter earnings. Défense giant Hanwha Aerospace climbed 2.3 percent and LIG Nex1 surged 4.4 percent.

Australian markets hit a three-month high as steady iron ore prices boosted mining stocks. Traders also braced for an expected rate cut from the Reserve Bank of Australia on May 20.

The benchmark S&P/ASX 200 index rose 0.56 percent to 8,343.70, logging its eighth day of gains. The broader All Ordinaries index settled 0.59 percent higher at 8,579.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.73 percent to 12,786.79 as initial euphoria over the U.S.-China trade truce faded.

U.S. stocks ended a lackluster session on a mixed note overnight while Treasury yields dipped, as new data spurred speculation the Federal Reserve will cut interest rates twice this year to prevent a recession.

Producer prices unexpectedly fell by the most in five years in April, retail sales growth slowed sharply in the month, factory production declined for the first time in six months, New York state manufacturing contracted for a third month and homebuilder confidence unexpectedly slumped in May, a slew of reports revealed.

The S&P 500 rose 0.4 percent to extend gains for a fourth day running and reach its highest closing level in well over two months.

The narrower Dow gained 0.7 percent while the tech-heavy Nasdaq Composite slid 0.2 percent.