Benchmark indexes in Asia closed higher and Japan's economy expanded in the second quarter after shrinking in the first. China lowered key lending rates on a slower rebound in economic activities.

Asian markets eased ahead of the U.S. inflation report and weak tech stocks. China's consumer prices rose to a two-year high in July. Japan's producer prices rose at a slower pace. Weak semiconductor stocks dragged indexes in Tokyo and Hong Kong.

Asian markets diverged, reacting to local earnings reports. The Nikkei index declined after SoftBank reported a large loss. Indexes in South Korea extended recent rallies.

Benchmark indexes in Asia closed lower on the worries that the real estate sector crisis is spreading to more cities and engulfing regional and smaller banks.

Asian markets advanced for the seven session in a row. Japan's core inflation stayed above the central bank's target for the third month in a row. in June.

Asian markets were bolstered after Shanghai achieved zero Covid-19 transmission for the third day in a row. The Nikkei advanced for the third day in a row and tech stocks in Hong Kong led the advance. Australian markets were muted on the prospects of future rate hikes.