Asian shares inched higher on Friday but were on track for a weekly loss, while the dollar edged away from highs scaled after U.S. GDP data reinforced expectations that the Federal Reserve is on track to raise interest rates this year. Investors kept a wary eye on China, where stocks dropped on Thursday after state media reported that banks were investigating their equities exposure in the wake of the recent dramatic rout there.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up about 0.1 percent in early trading, but set for a weekly loss of more than 1 percent. Japan’s Nikkei stock index .N225 was down about 0.2 percent, poised to log a 0.3 percent loss for the week.
A spate of Japanese economic data released before the open contained some worrying signals, with a drop in household spending, a fall in Tokyo-area consumer prices and a rise in the June jobless rate. On Wall Street, U.S. shares put in a mixed performance, as downbeat earnings offset solid economic data.