Japan's indexes trimmed weekly and monthly advances after the U.S. appeals court prolonged the trade policy uncertainty. Elevated inflation in the Tokyo area supported the case for additional interest rate hikes later in the year.
Investors in China shifted their attention to earnings and economic releases after a U.S. court struck down unilateral tariffs imposed by the U.S. president last month.
China and Hong Kong indexes lacked direction after a mixed batch of earnings. PDD Holdings turned lower amid worries of rising competition, and Xiaomi advanced after a shift to premium products drove revenue and earnings to record highs.
Profit growth at industrial companies in China accelerated in April, as Beijing's measures to shore up economic growth amid trade uncertainties supported business activities.
Japan's consumer price inflation held steady, and the core rate of inflation rose to a two-year high amid elevated food prices. So far the government's efforts to contain rice price increases have failed.
Stock market indexes in China and Hong Kong advanced and extended gains for the sixth consecutive week amid a busy week of initial public offerings in Hong Kong.
Stock market indexes in China and Hong Kong lacked direction, and investors debated the outlook for earnings and the economy. Investors remain cautious amid stretched valuations, trade uncertainties, and weak consumer confidence.
The yen strengthened for the seventh consecutive session amid rising inflow of foreign funds. Japan's annual trade deficit shrank in April after exports rose at the slowest pace in seven months.
Benchmark indexes in China and Hong Kong extended gains a day after the PBOC lowered rates for the first time in seven months. Investors are hoping that the central bank may deliver additional rate cuts and trim reserve requirement ratios in the months ahead.
The U.S. and Japan are likely to start their third round of trade talks as early as Friday, amid low expectations for a relief in import duties on Japanese vehicles and parts.
The People's Bank of China lowered its 1-year and 5-year loan prime rates by 10 basis points to support economic expansion and soften the negative impact of the U.S. tariff episode.
