Asian Markets Gain on China’s Stimulus Hopes Despite Mixed Economic Data

Asian stock markets advanced on Friday, buoyed by optimism over fresh stimulus measures announced by China, even as the country’s economic data painted a mixed picture.

The Shanghai Composite rose 1.2%, while Hong Kong’s Hang Seng Index gained 1.5%, and Japan’s Nikkei 225 added 0.8%. South Korea’s KOSPI climbed 0.7%, reflecting improved investor sentiment amid hopes that Beijing’s targeted support will reinvigorate growth.

China’s government revealed a package of tax cuts, infrastructure investments, and easier credit policies aimed at supporting small businesses and the struggling real estate sector. Analysts view these measures as timely steps to counter slowing growth amid ongoing challenges such as weak domestic consumption and export uncertainties.

“China is doubling down on stimulus to stabilize growth,” said Mei Lin, senior economist at Global Insights. “While the economy faces structural challenges, the new policies should provide a near-term boost.”

However, data released on Friday showed China’s industrial production growth slowed to 3.1% year-over-year in June, down from 4.5% in May. Retail sales also underperformed expectations, rising only 1.6%, signaling cautious consumer spending.

The mixed data underscores ongoing headwinds as the government balances stimulus with efforts to manage rising debt and property market risks.

Elsewhere in Asia, economic concerns persisted. India’s Sensex index closed flat amid uncertainty over inflation and the upcoming central bank policy decision. Southeast Asian markets posted modest gains, supported by strong commodity prices.

Currency markets were relatively stable, with the Chinese yuan steady against the dollar, and the Japanese yen weakening slightly.

Investors are now looking ahead to next week’s release of key economic indicators across the region, including export figures and inflation data, which will provide further insight into the health of the Asian economy.