Asian Stock Market: Japan’s Surprise Trade Surplus; PBoC holds rate unchanged

• Asian stock markets trade mixed; investors digest the data in the region.
• Japan's trade balance unexpectedly flipped to its first surplus since July 2021.
• The People's Bank of China maintained benchmark lending rates unchanged.

Asian stock markets trade mixed on Thursday as investors digest the economic data in the region. The KOSPI Index posted a modest loss of 0.20%, while the NIFTY 50 fell 0.18%.

In Japan, the NIKKEI fell 0.95%. The Finance Ministry said on Thursday that the Japanese trade surplus came to ¥43 billion. Market consensus had forecast a ¥46.7 billion deficit. The value of exports rose 1.5%, led by shipments of automobiles and construction equipment. Imports fell 12.9% due to substantial declines in the value of fuel shipments into Japan. Japan's trade balance unexpectedly flipped to its first surplus since July 2021, easing pressure on the economy's recovery.

Furthermore, Bank of Japan (BOJ) Governor Kazuo Ueda stated on Tuesday that there was still some way to go before reaching the 2% inflation target, per Reuters.

Market investors are now focusing on the Bank of Japan's (BoJ) interest rate decision scheduled for next week. BoJ Governor Kazuo Ueda is expected to maintain a dovish policy stance in order to keep inflation steady at approximately 2%.

Hong Kong’s Hang Seng index futures trade around 19,000, up 0.26% on the day. Meanwhile, the Shanghai SE Composite Index is down 0.33%.

In China, the People's Bank of China announced on Thursday that it maintained benchmark lending rates unchanged. The one-year and five-year Loan Prime Rates (LPR) were kept unchanged at 3.55% and 4.20%, respectively.

The Chinese growth number on Monday raised concern about an economic slowdown in the world's second-largest oil consumer. However, the renewed trade war tensions between the US-China might exert pressure on WTI. 

On Thursday, China's Ambassador Xie Feng criticized the US's consideration of foreign investment and AI chip restrictions. He added that China would retaliate if the US imposed more curbs on its chip sector in Beijing. 

Investors will focus on the Bank of Japan's (BoJ) interest rate decision next week and monitor the headlines surrounding Sino-US relations.