Asian stocks were a mixed bag on Monday, with Japanese markets rising on a slightly positive revision in gross domestic product data, while other Asian markets sank on resurgent concerns over U.S. interest rates.
Holidays in China, Hong Kong and Australia also kept trading volumes languid.
Regional markets took a weak lead-in from Wall Street, which fell on Friday following a blowout nonfarm payrolls report. U.S. futures steadied in Asian trade.
Risk sentiment was also somewhat hit by the European Union elections, which showed a broader shift towards right-wing and far-right parties. French President Emmanuel Macron called for snap legislative elections later in June after his party was beaten by Marine Le Pen’s far-right party in the EU vote.
Japanese stocks rise as GDP improves
Japan’s Nikkei 225 index rose 0.7%, as did the broader TOPIX index.
GDP data for the first quarter was revised to show a slightly smaller contraction than initially estimated, especially as capital spending during the quarter shrank less than expected.
While the revision indicated that the Japanese economy was not in as dire straits as initially perceived, the GDP data still showed the economy shrank in the first quarter, amid pressure from weak consumption.
The reading comes just days before a Bank of Japan meeting later this week, where the central bank is expected to tighten policy by reducing its pace of asset purchases. But the weak GDP data also raised questions over how much headroom the BOJ has to tighten policy further.
