(Sharecast News) - Asia-Pacific markets closed mixed on Friday as investors weighed robust Chinese trade data against continued uncertainty over upcoming US-China trade talks.
China's exports rose sharply in April, led by surging shipments to Southeast Asia, but this was counterbalanced by a significant drop in exports to the United States following the imposition of higher tariffs.
"Japanese stocks surged on Friday, bolstered by the dollar's rise against the yen after a trade agreement between the US and Britain sparked optimism for progress in tariff negotiations with other nations," said TickMill market strategy partner Patrick Munnelly.
"Bitcoin climbed to its highest level since January, while US crude oil prices edged higher following a more than 3% jump on Thursday.
"This increase came after US president Donald Trump announced the deal with British prime minister Keir Starmer, marking the first trade agreement since Trump implemented a 90-day pause on trade tariffs to encourage negotiations."
However, Munnelly noted that concerns lingered that the limited agreement with London might not serve as a template for broader deals, tempering enthusiasm ahead of the Sino-US trade talks set for Saturday in Switzerland.
"Mainland blue-chip stocks traded higher, with Hong Kong's Hang Seng Index and Japan's Nikkei also posting gains.
"The broader Topix rose ... extending its winning streak to 11 consecutive sessions - the longest since October 2017.
"Global markets appeared more optimistic about easing trade tensions than they were two weeks ago, when the US administration first signalled a potential de-escalation with China."
Markets mixed ahead of planned US-China trade talks
Japan led regional gains, with the Nikkei 225 climbing 1.56% to 37,503.33 and the Topix rising 1.29% to 2,733.49.
Major movers included NTT Data, which surged 14.26%, Ajinomoto up 7.4%, and Kao Corporation which added 6.4%.
In Australia, the S&P/ASX 200 rose 0.48% to 8,231.20, with Nuix up 10.19%, Nine Entertainment Co gaining 6.04%, and Tabcorp Holdings rising 5.26%.
New Zealand's S&P/NZX 50 added 1.11% to close at 12,605.07, supported by a 5.33% rise in NZX Ltd, Skellerup Holdings up 3.47%, and EBOS Group advancing 3.32%.
China's markets declined, with the Shanghai Composite falling 0.3% to 3,342.00 and the Shenzhen Component losing 0.69% to 10,126.82.
Among the steepest losers in Shanghai were Maoye Commercial down 9.9%, Shanghai Wondertek Software down 9.19%, and Shanxi Huayang New Material which dropped 8.88%.
In Hong Kong, the Hang Seng Index rose 0.4% to 22,867.74, led by gains in Henderson Land up 6.18%, Sun Hung Kai Properties up 5.05%, and Geely Automobile Holdings rising 4.79%.
South Korea's Kospi 100 edged down 0.03% to 2,556.18, weighed by a 10.04% fall in Kumho PetroChemical, SK Biopharmaceuticals down 7.66%, and Posco ICT losing 6.29%.
In currency markets, the dollar was last down 0.38% on the yen, trading at JPY 145.35, while it rose 0.02% against the Aussie to AUD 1.5628, and added 0.22% on the Kiwi, changing hands at NZD 1.6972.
Oil prices moved higher amid geopolitical tensions, with Brent crude futures last up 1.8% on ICE to $63.97 per barrel, and the NYMEX quote for West Texas Intermediate advancing 1.9% to $61.05.
China exports rise sharply in April, Japan household spending grows
In economic news, China's exports rose sharply in April despite rising US tariffs, offering a sign of resilience in external demand as Beijing intensified its economic stimulus efforts.
Exports increased 8.1% year-on-year in dollar terms, significantly outpacing the 1.9% rise expected by economists.
Imports slipped just 0.2%, a smaller decline than the anticipated 5.9% drop, suggesting improving domestic demand conditions.
The People's Bank of China meanwhile set the daily midpoint for the yuan at CNY 7.2095 against the dollar.
It followed a series of easing measures announced earlier in week aimed at supporting growth amid renewed trade tensions with Washington.
In Japan, household spending rose 2.1% in March from a year earlier, surpassing forecasts of a 0.2% increase and reinforcing expectations that the Bank of Japan may begin normalising its ultra-loose monetary policy.
Average household spending reached JPY 339,232, while average real incomes fell 2% to JPY 524,343 yen, according to government data released Friday.
Reporting by Josh White for Sharecast.com.
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