Asian stocks showed a mixed performance on Friday as investors digested economic reports from the United States and awaited key data from China. The benchmark Nikkei 225 in Japan slipped 0.9% in morning trading, following a 3.4% increase the previous day. The strengthening of the Japanese yen against the US dollar added pressure on the nation’s export trade. Analysts suggest that the Bank of Japan is unlikely to make any rate moves at its upcoming meeting, but there may be indications of a hawkish stance to lay the groundwork for future rate hikes.
In Hong Kong, the Hang Seng index rose 1.1%, while the Shanghai Composite edged down 0.1%. China is set to release its monthly economic data on Saturday, with expectations of a slowdown in key indicators such as industrial production, fixed asset investment, and retail sales.
Meanwhile, Australia’s S&P/ASX 200 rose 0.3%, while South Korea’s Kospi shed 0.1%. In the United States, the S&P 500 climbed 0.7%, nearing its record set in July. The Dow Jones Industrial Average added 0.6%, and the Nasdaq composite gained 1%.
Nvidia, a prominent chip company, played a significant role in lifting the S&P 500, with its stock stabilizing after a summer decline. Reports indicated a slight increase in the number of US workers applying for unemployment benefits, while wholesale prices rose 1.7% in August compared to the previous year. These figures, along with Wednesday’s report on consumer prices, suggest that the Federal Reserve may deliver a quarter-point interest rate cut next week.
In the bond market, the yield on the 10-year Treasury slightly increased, while the average rate on a 30-year mortgage in the US reached its lowest level in 19 months. Oil prices also saw a modest rise, with benchmark US crude and Brent crude both gaining 31 cents per barrel.