Japanese yen weakens to 156 against dollar after Bank of Japan leaves rates unchanged

This is CNBC's live blog covering Asia-Pacific markets.

The Japanese yen slid to over 156 against the U.S. dollar on Friday after the Bank of Japan left its benchmark interest rate unchanged.

The BOJ kept its benchmark policy rate at 0%-0.1% as expected. Japan's central bank also said it will continue to conduct bond purchases in line with the March decision.

The yen touched fresh lows following the decision, hitting 156.79 against the U.S. dollar in afternoon trading.

Tokyo's headline inflation rate for April came in at 1.8%, slowing from the 2.6% in March. Core inflation in the capital — which strips out prices of fresh food — sharply fell to 1.6% from March's 2.4%, missing expectations of 2.2% from economists polled by Reuters.

Tokyo inflation data is widely considered as a leading indicator of nationwide trends.

Japan's Nikkei 225 climbed 0.81% to end at 37,934.76, while the Topix was up 0.86% and finished at 2,686.48.

Hong Kong's Hang Seng index rose 2.12%, leading gains in Asia, while mainland China's CSI 300 was 1.53% higher at 3,584.27.

South Korea's Kospi was up 1.05% and closed at 2,656.33, while the small cap Kosdaq saw a smaller gain of 0.42% to 856.82.

However, Australia's S&P/ASX 200 was down 1.39% and closed at 7,575.9, dragged by industrial and health services stocks.

Overnight in the U.S., stocks tumbled after data showed a sharp slowdown in economic growth and pointed to persistent inflation.

U.S. gross domestic product expanded 1.6% in the first quarter, the Bureau of Economic Analysis said. Economists polled by Dow Jones forecast GDP growth would come in at 2.4%.

Along with the downbeat growth rate, the report showed the personal consumption expenditures price index increased at a 3.4% pace, well above the previous quarter's 1.8% advance.

The Dow Jones Industrial Average slid 0.98%, weighed down by steep declines in Caterpillar and IBM. The S&P 500 dropped 0.46%, and the Nasdaq Composite lost 0.64%.

— CNBC's Brian Evans contributed to this report.

Bank of Japan's Ueda says if yen moves affect the economy then it could be a reason to adjust policy

Bank of Japan Governor Kazuo Ueda addressed the weaker Japanese yen at a post-meeting conference.

"Monetary policy does not directly target currency rates. But exchange-rate volatility could have a significant impact on the economy and prices. If yen moves have an effect on the economy and prices that is hard to ignore, it could be a reason to adjust policy," Ueda said in Japanese, translated by Reuters.

For now, he said, the yen's weakness has not had an impact on underlying inflation in Japan, according to the translation.

"But prices are overshooting as a whole and the chance of inflation moving in line with our forecasts is rising... There's a risk that we could see a second round of cost-push inflation," Ueda said, according to the Reuters translation.

— Shreyashi Sanyal

Hong Kong tech stocks jump nearly 5%

Hong Kong's Hang Seng Tech index jumped 4.7% in afternoon trading, as technology stocks led gains.

Shares of Chinese AI giant SenseTime Group surged 25%, while electric vehicle makers such as Nio and Li Auto rose over 5% each.

Sentiment was positive overnight as U.S. Big Tech players including Alphabet and Microsoft posted strong earnings.

The broader Hang Seng index gained 2.4%.

— Shreyashi Sanyal

Yen hits new low after Bank of Japan keeps policy rate unchanged

The Bank of Japan held its benchmark policy rate unchanged at 0%-0.1%, as expected.

The BOJ also said it will continue to conduct bond purchases in line with the March decision, but no comment was made on the yen.

The Japanese yen weakened beyond 156 against the U.S. dollar following the decision, touching fresh 34-year lows. The benchmark Nikkei 225 index extended gains to rise 0.7%.

Investors now await a press conference by BOJ Governor Kazuo Ueda later in the day.

— Shreyashi Sanyal

Australia producer prices grow at faster rate in the first quarter

Australia's producer price index recorded a 4.3% gain in the first quarter from a year ago, accelerating from the 4.1% gain in the fourth quarter.

The 4.3% gain also was the fastest climb since the the first quarter of 2023. On a quarter on quarter basis, Australia's PPI rose 0.9%.

The country's statistics bureau highlighted that the main contributors to the increase include property operators, tertiary education and building construction, with tertiary education posting the largest increase in prices.

— Lim Hui Jie

Hon Hai shares jump 4% to highest level in over two weeks

Shares of Taiwan's Hon Hai Precision Industry jumped as much as 4.3% in early trading, hitting an over two-week high.

U.S. software company Cerence said it will supply Hon Hai EV subsidiary Foxtron with a voice-powered AI assistant. Cerence said the system features bilingual recognition of Taiwanese Mandarin and English.

"We're proud to partner with Foxtron to bring the power of voice interaction to drivers in Taiwan for the first time," said Christian Mentz, chief revenue officer at Cerence.

Shares of Hon Hai have surged nearly 50% so far this year.

— Shreyashi Sanyal

Tokyo inflation slows sharply in April, core inflation sharply lower than expected

Inflation in Japan's capital city of Tokyo slowed to 1.8% in April, down from the 2.6% gain in March.

Core inflation in the city — which strips out prices of fresh food — came in at 1.6%, down from 2.4% in March and missing expectations of 2.2% from economists polled by Reuters.

Tokyo's inflation figures are widely considered to be a leading indicator of nationwide trends.

— Lim Hui Jie

CNBC Pro: Goldman Sachs likes these 2 mobile gaming stocks set for 'blockbuster' launches, gives one 40% upside

Investors seeking exposure to China's growing gaming industry should look specifically at two technology according to Goldman Sachs.

The investment bank expects "China to see faster growth from mid 2024 supported by game launches and a loosening regulatory environment."

Touching on opportunities for the companies, the Wall Street bank flagged opportunities such as "an accelerating quarter with blockbuster title launches," in 2Q2023.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

CNBC Pro: Should investors buy the dip in Lululemon? Here's what this fund manager says

Shares of popular athleisure brand Lululemon have plummeted this year, trailing the S&P 500 significantly.

Its shares, which were included in the Wall Street index just last October, are down around 28% year-to-date.

Does that make it a good bargain for investors right now? Jack Dwyer, CEO of Infusive Asset Management, weighs in.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Fed’s preferred inflation gauge for March will be out Friday

The personal consumption expenditures price index will be due on Friday morning, giving the Federal Reserve a detailed glimpse into the latest inflation metrics.

For March, economists polled by Dow Jones anticipate headline PCE grew 0.3% from the prior month and by 2.6% from 12 months earlier. They expect that core prices, which exclude food and energy costs, grew by 0.3% on a monthly basis and by 2.7% year over year.

The first-quarter gross domestic product report issued Thursday revealed that PCE for the period rose by 3.4%, well above the 1.8% increase in the fourth quarter. The result incited a sell-off for stocks as investors fretted over signs of stagflation – a scenario in which the economy's growth slows but inflation rises.

-Darla Mercado