Most Asian stocks rose on Friday, capping off a volatile week as investors awaited key U.S. nonfarm payrolls data for more cues on interest rates in the world’s largest economy.
Japan’s Nikkei 225 was the best performer in the region after U.S. President Donald Trump signed an executive order implementing a Washington-Tokyo trade deal, which entails lower trade tariffs against the Asian country.
Chinese markets steadied after being battered by profit-taking this week, with markets now looking to a host of economic readings due next week for more cues on the Chinese economy.
Regional markets took positive cues from Wall Street, where optimism over lower interest rates saw the S&P 500 close at a record high on Thursday. Focus is now squarely on nonfarm payrolls data, due at 08:30 ET (12:30 GMT).
S&P 500 Futures rose 0.2% in Asian trade.
Japanese stocks lead on US trade optimism
Japan’s Nikkei 225 index added 0.8%, while the TOPIX rose 0.4%. The Nikkei was trading up 0.4% this week.
Sentiment towards Japan was buoyed by Trump executing a recently signed trade deal, which will entail lower trade tariffs on Japan, especially the country’s key automobile sector.
Stronger-than-expected private spending data also highlighted some resilience in the Japanese economy. Household spending rose more than expected in July from the prior month, while overall wage income of employees also beat expectations.
The readings highlighted strength in consumer spending, which is a key driver of Japanese growth. But they also pointed to some stickiness in inflation– a trend that could attract more interest rate hikes from the Bank of Japan in the coming months.
Chinese stocks head for weekly losses after August rally
China’s Shanghai Shenzhen CSI 300 rose 0.9%, while the Shanghai Composite added 0.4%. Hong Kong’s Hang Seng index rose 0.5%, with all three indexes advancing after a sluggish start to the day.
Mainland Chinese markets vastly lagged their Asian peers this week, and were set to lose about 2.6% amid a wave of profit-taking.
This came after Chinese shares logged stellar gains in August, racing to multi-year highs on optimism over more stimulus measures and an increased push for self-reliance in artificial intelligence technology.
Private purchasing managers index data released this week showed some resilience in the Chinese economy, with trade and inflation data set to provide more economic cues in the coming week.
The Hang Seng was trading up 0.3% this week on some resilience in technology shares.
Broader Asian markets mostly advanced on Friday and were set for middling weekly performances. Australia’s ASX 200 rose 0.4%, while Singapore’s Straits Times index added 0.3%.
South Korea’s KOSPI was flat.
Indian stocks set for weekly gain on tax cheer
India’s Nifty 50 index fell 0.3% in morning trade.
Source :
https://www.investing.com/news/stock-market-news/asia-stocks-edge-higher-with-us-payrolls-in-focus-japan-leads-on-trade-optimism-4225919
