Asian Markets Mixed as Japan GDP Disappoints, Alibaba Drags Hong Kong

Asian stock markets traded mostly lower on Friday, weighed down by weak Japanese GDP data and a steep decline in Alibaba shares, while Australian equities outperformed on rate cut hopes.

Japan’s Nikkei 225 fell 0.5% and the TOPIX dropped 0.3% after data showed the economy contracted 0.7% year-on-year in Q1, far worse than the expected 0.2% drop. Sluggish exports and weak consumer spending contributed to the decline, although the weak data fueled expectations the Bank of Japan will maintain accommodative policy.

Hong Kong’s Hang Seng index led regional losses, falling over 1%, driven by a sharp 7.5% slide in Alibaba Group (NYSE:BABA, HK:9988) following a Q4 revenue miss and weaker-than-expected cloud business performance. JD.com (HK:9618) also declined nearly 2% as earnings highlighted fragile Chinese consumer sentiment amid persistent disinflation.

Despite Friday’s drop, Chinese and Hong Kong markets remained higher for the week, buoyed by optimism over a temporary U.S.-China tariff rollback. However, sentiment faded as investors awaited a more concrete resolution to trade tensions.

Mainland indexes also declined, with the CSI 300 and Shanghai Composite shedding 0.8% and 0.6% respectively. South Korea’s KOSPI was flat, while Singapore’s STI dipped 0.2% even after strong export data.

In contrast, Australia’s ASX 200 rose 0.6%, hitting a two-month high amid expectations that the Reserve Bank of Australia will lower interest rates next week.

India’s Nifty 50 Futures pointed to a muted open after the index touched a seven-month high earlier in the week.

While U.S. stock futures remained slightly negative, Asian equities were on track for weekly gains, supported by easing trade fears and dovish central bank expectations.