Japan falls nearly 3% in mixed Asian trading day after historic U.S. GDP contraction

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Stocks in Asia Pacific were mixed on Friday following a record contraction in U.S. gross domestic in the second quarter.

Japanese stocks led losses among Asia’s major markets, with the Nikkei 225 down 2.82% to close at 21,710 as shares of conglomerate Softbank Group dropped 4.39% while the Topix index ending its trading day at 2.82% to 1,496.06. Shares in Australia also saw sizable losses with the SP/ASX 200 falling 2.04% to close at 5,927.80.

Mainland Chinese stocks were higher on the day, with the Shanghai composite up 0.71% to about 3,310.01 while the Shenzhen component gained 1.27% to around 13,637.88.

China’s official manufacturing Purchasing Managers’ Index for July came in above expectations at 51.1, according to the country’s National Bureau of Statistics. Analysts polled by Reuters expected a reading of 50.7.

“(China’s) the only economy that we think will get back to pre-Covid heights this year,” Sean Taylor, chief investment officer for Asia Pacific at DWS, told CNBC’s “Capital Connection” on Friday. “We are impressed with … the rise in the … Chinese economy. We just have to watch if it’s sustainable.”

Meanwhile, the Hang Seng index in Hong Kong slipped 0.14%, as of its final hour of trading. The Kospi in South Korea shed 0.78% to close at 2,249.37.

Overall, the MSCI Asia ex-Japan index dipped 0.16%.

Markets in Singapore, Malaysia and Indonesia were closed for a holiday on Friday.

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