Japan’s Nikkei 225 and Topix rose 0.9% and 0.8%, respectively, largely ignoring data that showed economic growth slowed sharply in the third quarter.
GDP rose 0.9% year-on-year, slightly beating expectations but slowing sharply from a 2.2% rise in the previous quarter, which was also revised downward.
Private consumption remained strong and was the only point of support for the economy, especially as capital spending and foreign demand slowed. The strong yen also weighed on Japanese exporters during the quarter, although the currency has weakened sharply since then.
The weak reading raised hopes that the Bank of Japan would have little room to raise interest rates further, especially in the face of growing political uncertainty.
Broader Asian markets maintained a tight range, as traders tempered their expectations for an immediate drop in US interest rates.
Australia’s ASX 200 rose 0.5%, while South Korea’s KOSPI fell 0.5%.
India’s Nifty 50 futures pointed to a weak open, after the index slid into correction territory from its record highs in September.
Indian markets have been hit hard by sustained foreign capital inflows, as optimism about the economy has been tempered by steady inflation.
Sentiment towards broader Asian markets has also been hurt by the prospects of a Trump presidency, given that he has proposed increasing tariffs on all imports into the US. China is likely to be hit hardest by these tariffs, with Trump proposing 60% tariffs.
