Asia markets mixed; Tokyo hits one-year high on tech gains despite sluggish output data

Asian equity markets showed a mixed tone on June 29, with Tokyo extending its winning streak to a seventh session. The Nikkei 225 rose 0.79%, reaching its highest level in a year, driven by strong performance in the technology sector. The rally came despite weaker-than-expected industrial production data for May, reflecting subdued external demand — mainly attributed to U.S. tariffs on Japanese automobiles.

Shenzhen also traded higher, up 0.80%, while Hong Kong slipped 0.22%, weighed by profit-taking. Seoul gained 0.6%, supported by semiconductor stocks. Mumbai edged down 0.35%, and Sydney advanced 0.5% in modest trade.

Investor sentiment in Asia remains broadly positive on hopes for a trade resolution with the U.S., while geopolitical risks eased following a U.S.-brokered ceasefire between Israel and Iran. The move is seen as helping reduce the risk of disruption to global supply chains.

In currency markets, the euro was broadly steady against the Japanese yen (-0.12%), the Chinese yuan (unchanged), and the Hong Kong dollar (+0.06%).

In the bond market, the 10-year Japanese government bond yield stood at 1.44%, while the Chinese 10-year bond yielded 1.65%.