Japan's Nikkei hits 6-month high, tracking Wall Street gains after White House downplays tariff deadline

Asia-Pacific markets traded mixed Friday, breaking ranks with Wall Street's gains after White House spokesperson Karoline Leavitt downplayed the impending start of the tariff deals, which have weighed on investor sentiment.

July 8 is when the so-called liberation day tariffs are set to take effect after a 90-day pause, and July 9 is the deadline for an EU deal to avoid 50% tariffs.

“The deadline is not critical,” said Leavitt. “Perhaps it could be extended, but that's a decision for the president to make.”

Japan's benchmark Nikkei 225 climbed 1.38% to a six-month high and crossed the 40,000 mark for the first time since Jan. 7, while the broader Topix index advanced 1.22%.

The country's capital city of Tokyo saw core consumer price index excluding fresh food and fuel rise 3.1% year on year in June,slower than the 3.6% increase seen in the previous month, and the 3.3% gain penciled by economists polled by Reuters.

In South Korea, the Kospi index fell 1.2%, while the small-cap Kosdaq dropped by 1.18%.

Hong Kong's Hang Seng Index and mainland China's CSI 300 index were flat after data released by the National Bureau of Statistics showed that the country's industrial profits fell 9.1% year on year in the first five months of the year.

Over in Australia, the S&P/ASX 200 benchmark inched down 0.17% in choppy trade.

India's benchmark Nifty 50 and the BSE Sensex were flat.

U.S. stock futures moved up at midday Asian hours as investors awaited the release of several data points, including inflation, personal income, consumer spending and consumer sentiment.

Overnight stateside, the S&P 500 rose to within a whisker of a new record high, as the broad market index overcame a slew of macroeconomic challenges including tariff wars, geopolitical tensions and sticky inflation.

The S&P 500 climbed 0.8% to close at 6,141.02, bringing its gain on the week to 2.9% and putting it just a few points away from its intraday all-time high of 6,147.43 in late February.

The Nasdaq Composite advanced 0.97% to 20,167.91, also inches away from a new record. The Dow Jones Industrial Average increased by 404.41 points, or 0.94%, to 43,386.84.

Xiaomi shares surge nearly 8% to hit record high in early trade

Shares of Hong Kong-listed Xiaomi surged as much as nearly 8% to hit a record high in early trade Friday following the launch of its new luxury electric vehicle.

The Chinese smartphone company unveiled its luxury YU7 SUV on Thursday at a starting price of 253,500 yuan ($35,322), lower than that of its rival Tesla's Model Y, which starts at 263,500 yuan in China, Xiaomi CEO Lei Jun pointed out.

Japan's Nikkei 225 share average crosses 40,000 mark, hits 6-month high

Japan's Nikkei 225 extended gains Friday after hitting a five-month high in its previous session.

The 225-stock share average climbed 1.46% to 40,162.49, as of 11 a.m. local time, to hit its highest level since Dec. 27, 2024.

The benchmark also crossed the 40,000 mark for the first time since Jan. 7, per FactSet data.

The best-performing stocks on the index were Kawasaki Heavy Industries which surged 7.75%, Disco Corp which rose 7.11%, and Sumitomo Pharma which advanced 6.72%, LSEG data showed.

— Amala

Japan's May retail sales rise at slowest pace in three months

Japan's retail sales rose 2.2% year on year in May, compared to the 3.3% increase seen in the month before, according to data from the Ministry of Economy, Trade and Industry released Friday.

The latest reading is the lowest in three months and missed the 2.7% rise forecast by economists polled by Reuters, LSEG data shows.

Japan's May jobless rate unchanged at 2.5%

Japan's unemployment rate remained unchanged at 2.5% in May, according to government data released on Friday. This reading is in line with estimates forecasted in a Reuters poll.

However, there were 124 job openings for every 100 job seekers in April, down from 126 in the previous month, which matched the predictions by economists polled by Reuters.

Tokyo's core inflation rises at a slower pace in June

Japan's Tokyo core consumer price index, excluding fresh food and fuel, rose 3.1% year on year in June, slower than the 3.6% increase seen in the previous month, according to data released by the Statistics Bureau of Japan on Friday.

The latest reading is also slower than the 3.3% gain forecast by economists polled by Reuters.

Meanwhile, the headline inflation for Japan's capital in June was 3.1% year on year, down from 3.4% in the month before.

Tokyo inflation data is considered a key indicator of overall price growth in Japan. The index is closely watched by the Bank of Japan as a broader price trend indicator.