Investing.com - Asian markets appeared to mostly shrug off the political uncertainty in the U.K. on Friday as investors sought local names in light trade.
"The possibility of a reduced Conservative majority or event a minority government is unlikely to have a significant impact on broader global markets," CMC Markets Chief Market Analyst Ric Spooner said in a Friday morning note, adding that the market moves would "likely be confined to the U.K."
China reported CPI for May with a 0.1% drop on month, less than the 0.2% dip seen and a 1.5% increase on year as expected. PPI rose 5.5%, less than the annual pace of 5.7% expected and a dip from a 6.4% gain in April. As well, Austrlia reported home loans figures dropped 1.9% for April with a 1.0% decline seen on month.
Japan's Nikkei 225 rose 0.90% in early trade and the Kospi gained 0.36%. Australia's benchmark S&P/ASX 200 index eased 0.05%. The Shanghai Composite opened up 0.12%.
Overnight, U.S. stocks closed modestly higher, as investors mulled over former FBI Director James Comey’s testimony which overshadowed data showing that initial jobless claims fell less than expected.
U.S. stocks advanced, as the Dow Jones industrial average hit an intraday high, on the back of former FBI chief James Comey’s public testimony, which offered little to spark fears of a potential increase in U.S. political turmoil.
Comey told the Senate Committee that President Donald Trump was not directly under investigation at the time he was fired but accused the Trump administration of choosing to defame him and the FBI by “claiming the agency was poorly led”.
Ahead of the testimony, investors feared that Comey’s testimony could engulf the Trump administration in further political scandals, delaying the administration's plans to implement economic initiatives such as tax reform intended to boost the economy.
On the economic data front, investors digested weekly initially jobless claims data, which fell short of expectations.
The U.S. Department of Labor reported that initial jobless claims decreased by 10,000 to 245,000 in the week ended June 3, below forecasts of a 15,000 decline.
The Dow Jones Industrial Average notched closed at 21,182.53. The S&P 500 gained 0.03% while the Nasdaq Composite closed at 6321.76, up 0.39%.