Asia report: Stocks mostly higher amid economic data barrage

17th Aug 2026 10:02

(Sharecast News) - Asian stocks finished firmly higher on Monday with strong gains in the tech sector lifting markets, as investors digested mixed economic data in Japan and awaited key indicators from China.

The Nikkei 225 in Tokyo closed 0.7% higher, while the Hang Seng and Shanghai Composite both jumped 1.3-1.4%. Gains were more muted elsewhere, while Australia's S&P/ASX 200 declined 0.5%. Meanwhile, the KOSPI in South Korea was closed for a national holiday.

Making headlines during the session were figures from Japan's Cabinet Office, which showed that economic growth slowed more than expected in the second quarter of 2026.

Real Japanese GDP expanded by 0.3% over the April to June period, easing from the 0.5% growth registered in the first quarter. That was the third straight quarter-on-quarter increase in economic activity, but short of the 0.5% growth rate expected by analysts.

The disappointing data adds pressure on the Bank of Japan to contain inflationary pressures given the current weakness in the yen, with growing rate-hike bets pushing the country's 10-year bond yield to its highest since September 1996 on Monday.

The 10-year JGB yield hit 2.930%, up from 2.880% the day before, while the two-year yield rose 4.0 basis points to 1.690%, amid rising expectations that the BoJ will tighten monetary policy at its next meeting in September.

Over in China, a flurry of key data releases for July were released after markets closed at 0800 BST, with fixed asset investment, industrial production and retail sales all coming in below market forecasts. In particular, retail sales rose just 0.6% year-on-year, significantly under the 1.5% increase expected.

In equity news, chip stocks were performing well, with Cambricaon, SMIC and Foxconn among the best performers.

Chinese ecommerce titan Alilbaba rose on reports that it has agreed to sell its video-game arm, Lingxi Games, to Trustar Capital in a deal worth at least $1.5bn.

Meanwhile, fast-fashion giant Shein was once again in the spotlight amid reports that it is looking at a valuation of just $25bn in a planned IPO in Hong Kong, and plans to issue up to 8% of total shares to raise $2bn. The company was once valued at $100bn.