(Sharecast News) - Asia-Pacific equity markets mostly rose on Tuesday following stronger-than-expected economic data from China, which buoyed investor sentiment across the region.
China's gross domestic product expanded in the second quarter, beating forecasts from economists polled by Reuters, although growth slowed from the prior quarter.
Optimism was further fuelled by a Wall Street rally overnight and expectations of second-quarter corporate earnings in the US, alongside a closely watched inflation report.
"In a relatively active overnight news session, China reported slightly better-than-expected second quarter GDP growth," commented TickMill market strategy partner Patrick Munnelly.
"However, June retail sales growth of 4.8% y/y fell short of consensus by 0.5 percentage points, indicating that private consumption remains subdued.
"Equity markets found some support from the announcement that Nvidia has received US government approval to resume AI chip sales to China."
However, Munnelly said attention was shifting to the US CPI release and a packed corporate earnings calendar, which were expected to dominate market sentiment.
"In Japan, ahead of this weekend's upper house elections, the 10-year Japanese government bond yield traded within a narrow range but still reached a new post-GFC peak."
Most markets rise despite ongoing trade tension
In Japan, the Nikkei 225 rose by 0.55% to close at 39,678.02, led by gains in Furukawa Electric, which surged 6.49%.
Fujikura added 3.95% and Ebara gained 3.85%.
The broader Topix index edged up 0.09% to 2,825.31, as Japanese government bond yields also moved higher ahead of the upcoming upper house election.
In Hong Kong, the Hang Seng Index climbed 1.6% to 24,590.12, supported by a rebound in Chinese technology stocks after Nvidia signalled it would resume H20 AI chip sales to China soon.
CSPC Pharmaceutical Group jumped 7.51%, while Alibaba Group and Sino Biopharmaceutical advanced 6.97% and 4.94%, respectively.
On the mainland, the Shanghai Composite slipped 0.42% to 3,505.00 despite the upbeat GDP data, weighed down by heavy losses in select names.
Datang HuaYin Electric Power, Guosheng Shian Technology, and Jiangsu Lianhuan Pharmaceutical all fell by more than 10%.
The Shenzhen Component, however, rose 0.56% to 10,744.56.
South Korea's Kospi 100 added 0.52% to close at 3,245.82.
Doosan Enerbility led gains with a jump of 8.47%, followed by Hyundai Electric Energy Systems up 5.22% and LS Industrial Systems up 5.1%.
In Australia, the S&P/ASX 200 rose 0.7% to 8,630.30, driven by strength in tech and mining-related stocks.
Appen surged 6.51%, Hub24 climbed 6.42%, and St Barbara advanced 5.17%.
New Zealand's, the S&P/NZX 50 gained 0.09% to 12,689.63.
Tourism Holdings led the index with a 9.09% rally, while Synlait Milk rose 3.08% and Vista Group International added 2.27%.
Currency markets saw the dollar steady against the Japanese yen, inching up 0.01% to trade at JPY 147.74.
The greenback meanwhile fell 0.35% against the Aussie to AUD 1.5225, and declined 0.46% on the Kiwi to NZD 1.6667.
In commodities, oil prices eased, with Brent crude futures last down 0.51% on ICE at $68.86 per barrel, while the NYMEX quote for West Texas Intermediate dropped 0.72% to $66.50, as concerns over fresh US tariffs reignited demand for safe-haven assets like gold.
Bitcoin pulled back after hitting a record high in the previous session.
China economy expands more than expected, JGB yields jump ahead of election
On the data front, China's economy expanded by 5.2% in the second quarter, slightly ahead of economists' expectations but marking a slowdown from the prior quarter.
The figure, released on Tuesday by the National Bureau of Statistics, narrowly beat the 5.1% growth forecast in a Reuters poll but fell short of the 5.4% pace recorded in the first quarter.
It came as China grappled with persistent deflationary pressures, a protracted property market slump, and mounting trade tensions with the United States.
In Japan, government bond yields surged on Tuesday ahead of the upper house elections scheduled for 20 July.
The yield on 30-year Japanese government bonds jumped 14.5 basis points to a record high of 3.191%, according to CNBC.
10-year yields climbed nearly two basis points to 1.594% after briefly touching their highest level since 2008.
Yields on 20-year bonds also approached levels not seen since 1999, rising to 2.634%.
The moves reflected growing expectations that the Bank of Japan could shift further away from its long-standing ultra-loose monetary policy.
Reporting by Josh White for Sharecast.com.
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