SINGAPORE — Japan stocks surged on return to trade, while shares in the Asia-Pacific were mixed on Friday following strong gains in the previous session as investors digested the U.S. inflation report.
The Nikkei 225 briefly rose 2% and last traded 1.92% higher, while the Topix index rose 1.59%. Japanese markets were closed Thursday for a holiday.
In Australia, the S&P/ASX 200 shed 0.52%.
South Korea’s Kospi gained 0.28%, while the Kosdaq was around flat.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.14%.
Thailand’s market is closed for a holiday Friday.
Overnight in the U.S., major indexes struggled for direction before closing mixed.
The S&P 500 was fractionally lower at 4,207.27, while the Nasdaq Composite shed 0.58% to 12,779.91. The Dow inched 27.16 points, or 0.08%, higher to 33,336.67. The three major averages opened the session higher but lost steam as the day progressed.
“Financial markets initially reacted positively to the Producer Price Index data that showed inflation in the U.S. is moderating, but gains then whittled away on concerns the market may have overreacted,” according to an ANZ Research note on Friday.
The PPI for July dropped 0.5% from June, compared with an expected 0.2% rise, according to a Dow Jones survey.
In corporate news, Credit Suisse has reportedly applied to begin formal legal proceedings in the English High Court against Japanese tech company SoftBank Group over a $440 million dispute.