Mixed Asian Markets After Japan's Disappointing GDP; Shipping Stocks Surge

Asian stock markets showed mixed performance at the start of the trading week following Japan's weaker-than-expected GDP data. Japan's Nikkei index remained largely unchanged, while Hong Kong's Hang Seng rose by 1.6% and Shanghai's index increased by 0.6%. The Seoul stock exchange was closed for Liberation Day. Oil prices moved slightly amid these developments.

Japan's economy expanded at an annualized rate of 1.1% in the second quarter, falling short of economists' forecasts of 2% growth. This slowdown was attributed to weaker domestic demand offsetting strong export performance, which benefited from a weaker yen. The previous quarter's growth was 1.9%, and on a quarterly basis, Japan's economy grew by 0.3%, below the expected 0.5%.

Within the Nikkei, memory chip manufacturer Kioxia led gains with a 5.7% rise, followed by truck and bus maker Hino Motors, which gained 4.7%. Cybersecurity firm Trend Micro declined sharply by 9%, and industrial company Ebara dropped 8.8%. In Hong Kong, shipping giant Orient Overseas Container Line (OOCL) surged 6.4%, reflecting positive momentum in the shipping sector amid rising container prices. Competitors COSCO Shipping and Taiwan's Evergreen Marine also saw gains of 3.6% and 5%, respectively.

Amid this shipping sector rally, Israeli shipping company ZIM is scheduled to release its quarterly earnings report on Wednesday afternoon. Meanwhile, the U.S. retail earnings season begins this week with Home Depot reporting tomorrow before market open, followed by Target and Lowe's on Wednesday, and Walmart, the largest retailer, along with Chinese e-commerce giant Alibaba, reporting on Thursday. Chinese internet company Baidu will release its earnings on Tuesday afternoon.