Asia markets mixed as more U.S. inflation data comes in softer than expected

Asia-Pacific markets were mixed on Friday after more inflation data out from the U.S. came in softer than expected, raising optimism that inflation could come down without weakening the labor market.

The U.S. producer price index rose in June less than anticipated, climbing 0.1% year on year, while core PPI, which strips out volatile food and energy prices, climbed 0.1% — also lower than expectations.

Australia’s S&P/ASX 200 climbed 0.26% after the government appointed its central bank deputy governor Michele Bullock as the next governor for the Reserve Bank of Australia, to succeed incumbent Philip Lowe.

In Japan, the Nikkei 225 reversed earlier gains and fell 0.3%, while the Topix was down 0.5% ahead of its industrial production release for May. South Korea’s Kospi rose 0.78% while the Kosdaq inched lower.

Hong Kong’s Hang Seng index gained 0.95% in its first hour of trade, continuing the rally seen on Thursday. In mainland China, the Shanghai Composite fell fractionally and the Shenzhen Component rose 0.12%.

Singapore’s economy grew in the second quarter of the year, avoiding a technical recession. The Straits Times index rose 0.5%.

Overnight in the U.S., all three major indexes recorded a fourth straight day of gains, with the S&P 500 and the Nasdaq Composite closing at their highest levels in over a year.

The S&P 500 climbed 0.85%, while the Dow Jones Industrial Average added 0.14%. The Nasdaq Composite gained the most, gaining 1.58%.

— CNBC’s Hakyung Kim and Samantha Subin contributed to this report