Asian stock markets started the week on a mixed note after the release of a string of economic data from China and Japan.
Japan's Cabinet Office said the economy grew 3.9 per cent in the January-March quarter, beating forecasts of 2.4 per cent growth. However, many analysts expect growth in the second quarter to slow down as consumer spending slows and industrial output wanes, AP reports.
Meanwhile, fresh data revealed that China's imports tumbled 17.9 per cent in May from a year earlier, while exports fell by 2.5 per cent.
"It remains the view that bad news is good news. Every number we saw from China that has shown weakness has led to accommodation from the People's bank of China or some other means," Stephen Davies, CEO of Javelin Wealth Management, told CNBC. "It's been a rollercoaster ride and i don't think we are in touch with fundamentals so we getting a bit more cautious on valuations."
Japan's Nikkei 225 ended less than 0.1 per cent lower at 20,457.19 and South Korea's Kospi edged down 0.1 per cent to 2,065.19. Hong Kong's Hang Seng rose 0.5 per cent to 27,404.10, while China's Shanghai Composite Index jumped 2.3 per cent to 5,141.05. Australia's stock market was closed for a holiday.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.