In recent developments, Asian markets experienced mixed performances on Monday as investors awaited decisions from the Federal Reserve and the Bank of Japan this week. The U.S. jobs report revealed stronger-than-expected hiring and wage growth in May, which added to the narrative that the Fed might not need to lower interest rates as soon as anticipated.
Japan's economy contracted at an annualized 1.8% pace in the first quarter compared to the previous quarter, according to revised GDP numbers. This was a downward revision from the initially reported 2% contraction and also below expectations of a 1.9% contraction in a Reuters poll.
The Bank of Japan is set to announce its rate decision on Friday, while China and India's inflation numbers for May will be released on Wednesday.
Investors were also keeping an eye on the snap legislative elections called by French President Emmanuel Macron following a setback in Sunday's parliamentary election. The euro dropped as a result of this political uncertainty, with the European Union vote and Marine Le Pen's far-right party adding to concerns.
Asian markets were muted on Monday due to holidays in Australia, China, Hong Kong, and Taiwan. Japan's Nikkei 225 climbed 0.92% to close at 39,038.16 after the GDP announcement.
The S&P 500 ended flat on Friday despite touching an intraday record-high, with the Dow Jones Industrial Average slipping 0.22%, and the Nasdaq Composite edging down 0.23%. Despite these losses, all three major averages notched a winning week.
The economy contracted at an annualized 1.8% pace in Japan's first quarter compared to the previous quarter.
