Japan rises on GDP data; rest of region shaky

Tokyo: Asian shares were trading mixed on Wednesday as Japan's benchmark jumped on the news of solid economic growth data, while the rest of the region was mired in uncertainty.

Japan’s benchmark Nikkei 225 gained nearly 0.7 per cent in early trading to 30,039.41. Australia's S&P/ASX 200 dipped 0.5 per cent to 7,198.90, after a better-than-expected wage increase report.

The wage price index rose 3.7 per cent year on year. But that could mean an interest rate hike in coming months, according to some analysts. South Korea’s Kospi gained 0.6 per cent to 2,494.20. Hong Kong's Hang Seng lost 0.1 per cent to 19,957.89, while the Shanghai Composite was virtually unchanged at 3,291.23. Japan’s encouraging GDP data released earlier in the day showed consumption was rebounding after Covid-19-related restrictions were eased and borders opened to tourists.

Japan's economy, the world’s third largest, grew at an annual pace of 1.6 per cent in the quarter through March, according to the Cabinet Office. That was the strongest GDP growth pace since April-June 2022 marked a 1.1 per cent growth. The main negative came from declining exports due to sluggish global demand. Concerns about the Chinese and United States economies weighed on investor sentiments.