(RTTNews) – Asian stock markets are mostly higher on Friday after mostly positive news from Wall Street overnight, as bond yields fell on expectations that the U.S. Federal Reserve will cut interest rates this year to stave off a further slowdown in the world’s largest economy. Asian stock markets ended mostly lower on Thursday.
Atlanta Federal Reserve Bank President Raphael Bostic said he still expects one rate cut in the fourth quarter of this year as inflation improves.
Traders also appeared to be holding back from making any big moves ahead of a key U.S. inflation reading later in the day, which is expected to show a modest slowdown in the annual rate of consumer price growth and could have a major impact on interest rate outlooks.
The Australian share market recovered some of the losses from the previous two sessions to close modestly higher on Friday following generally positive signs from Wall Street overnight. The benchmark S&P/ASX 200 is nearing the 7,800 level, with most sectors seeing gains, led by technology, financial and energy stocks.
The benchmark S&P/ASX 200 index rose 37.10 points, or 0.48 percent, to 7,796.70 after earlier hitting a high of 7,819.00. The broader All Ordinaries index rose 38.20 points, or 0.48 percent, to 8,041.00. Australian markets ended slightly lower on Thursday.
Among the major miners, BHP Group and Fortescue Metals are down nearly 1% each, while Rio Tinto and Mineral Resources are down more than 1% each. Oil stocks are mostly higher: Santos and Origin Energy are up 0.1-0.5% each, Woodside Energy is up almost 1% and Beach Energy is up more than 1%.
Among tech stocks, Appen is up more than 1%, Zip is up more than 2%, Xero is up 0.4% and WiseTech Global is up nearly 2%, while Afterpay owner Block is down 0.2%.
Of the big four banks, Commonwealth Bank, ANZ Banking Corp, Westpac Banking Corp and National Australia Bank are each up nearly 1%. Gold mining stocks are mostly rising: Evolution Mining, Resolute Mining, Northern Star Resources Ltd and Gold Road Resources Ltd are each up 0.3-0.4% and Newmont is up more than 1%.
In other news, insurance group IAG said it had renegotiated contracts with global reinsurers, ensuring it was on track to achieve profits and margins in line with previous guidance for fiscal 2024, sending the company’s shares soaring more than 7%.
In economic news, the Reserve Bank of Australia said on Friday that total private sector credit in Australia grew 0.4% month-on-month in May, in line with expectations and down from 0.5% in April. On an annual basis, total private sector credit grew 5.2%.
In currency markets, the Australian dollar was trading at $0.664 on Friday.
Japan’s stock market reversed a previous day’s decline and rose sharply on Friday following generally positive signs from Wall Street overnight. The benchmark Nikkei average is above the 39,700 level, with most sectors rising, led by the index’s major stocks and financials.
The benchmark Nikkei Stock Average closed the morning session at 39,727.91, up 386.37 points, or 0.98 percent, from the previous day’s high of 39,783.70. Japanese stocks ended sharply lower on Thursday.
Market giant SoftBank Group Inc. rose more than 2%, while Uniqlo owner Fast Retailing Co. rose 0.3%. Among automakers, Honda rose almost 1%, and Toyota also rose more than 1%.
In the technology sector, Advantest rose 2.5%, Tokyo Electron rose more than 1% and SCREEN Holdings Retailing gained 0.5%.
In the banking sector, Mitsubishi UFJ Financial is up more than 3%, Sumitomo Mitsui Financial is up more than 2% and Mizuho Financial is up nearly 3%.
Among major export companies, Mitsubishi Electric is up about 3%, Panasonic is up about 1%, and Sony is up about 2%, while Canon is down 0.3%.
Other big gainers include Sumitomo Pharmaceuticals and IHI, up nearly 6% each, Ebara and MS&AD General Insurance, up nearly 5% each, T&D Holdings, up more than 3%, and Tokio Marine and Itochu, up nearly 3% each.
Conversely, Hino Motors is suffering a loss of about 5%.
In economic news, Japan’s unemployment rate was 2.6% seasonally adjusted in May, the Ministry of Internal Affairs and Communications said on Friday, in line with expectations and unchanged from April’s figure. The job availability ratio fell to 1.24, below the forecast of 1.26; forecasts were unchanged. The labor force participation rate rose to 63.3%, beating expectations of 63.2% and up from 63.1% the previous month.
Japan’s industrial production rose 2.8% month-on-month in May on a seasonally adjusted basis, the Ministry of Economy, Trade and Industry said on Friday, following a 0.9% decline in April and beating expectations of a 2.0% increase. Year-on-year, industrial production rose 0.3%.
In the foreign exchange market, the US dollar was trading in the high 160 yen range on Friday.
Elsewhere in Asia, China, Hong Kong, South Korea, Malaysia, Taiwan and Indonesia all rose between 0.1 and 0.8 percent. Singapore was little changed. New Zealand was closed for New Year’s Day. On Wall Street, stocks were lackluster in Thursday trading as traders braced for a closely watched inflation data release. Major stock averages traded around flat levels.
The major stock averages all ended up slightly higher: The Dow rose 36.25 points, or 0.1%, to 39,164.06, the Nasdaq added 53.53 points, or 0.3%, to 17,858.68 and the S&P 500 added 4.97 points, or 0.1%, to 5,482.87.
Meanwhile, major European markets were mixed on the day, with Germany’s DAX index rising 0.3%, while the UK’s FTSE 100 index fell 0.6% and France’s CAC 40 index fell 1.0%.
Oil prices closed higher on Thursday, buoyed by hopes for the demand outlook and concerns about possible supply disruptions due to tensions in the Middle East. West Texas Intermediate crude oil futures for August rose $0.84 to $81.74 a barrel.
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