Asian Stock Market: Trades mixed ahead of the BoJ, Fed meetings next week

• Asian stock markets trade on mixed notes.
• The Bank of Japan's (BoJ) is expected to maintain a dovish policy stance in its next meeting.
• Market players will monitor the headlines surrounding Sino-US relations.

Asian stock markets trade mixed on Friday. The KOSPI Index posted a modest loss of 0.05%, while the NIFTY 50 fell 0.77%. 

In Japan, the NIKKEI dipped 0.27%. The June Japanese National Consumer Price Index (CPI) rose from 3.2% to 3.3% YoY, versus 3.5% expected. Investors are now focusing on the Bank of Japan's (BoJ) interest rate decision scheduled for next week. Japanese policymakers are expected to maintain a dovish policy stance in order to keep inflation steady at approximately 2%.

Additionally, Japan’s surprise Trade Surplus for the first time since July 2021. 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.

Apart from the softer growth number 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. 

Chinese President Xi Jinping have a meeting with Henry Kissinger in China's capital on Thursday, amid efforts by Beijing and Washington to mend frayed ties. Market players will keep an eye on the development between the world’s two largest economies.

Meanwhile, Hong Kong’s Hang Seng index futures trade slightly higher than 19,000, up 0.72%. Meanwhile, the Shanghai SE Composite Index is up 0.04%.

In the absence of any top-tier data releases on Friday. Market participants await announcements from next week's Federal Open Market Committee's (FOMC) monetary policy meeting. Market participants will focus on the Bank of Japan (BoJ) interest rate decision, European Central Bank's (ECB) decision, and the Federal Reserve's (Fed) decision next week. Also, the headlines surrounding Sino-US relations will be in focus.