Asian Stocks Show Mixed Performance Amid U.S. Market Movements

Asian markets displayed a mixed performance on Friday following the United States stocks inching closer to record highs. This came after economic reports from the U.S. met expectations. Meanwhile, U.S. futures remained stable, and oil prices rose moderately.

Japan’s Nikkei 225, which saw a notable 3.4% jump on Thursday, slipped 0.9% in early trading to 36,491.80. The yen gained strength against the dollar, with the USD/JPY rate dropping to 141.05 from 141.79, adding pressure to Japan’s export trade.

Asian Currency Movements Impacting Markets

“The Bank of Japan isn’t expected to adjust interest rates at its upcoming meeting, but there could be some hawkish undertones suggesting that further rate hikes might be introduced in December or beyond,” said IG market analyst Yeap Jun Rong.
The potential policy shift has garnered attention as industrial production figures, which reflect Japan’s manufacturing demand, were scheduled for release later on Friday. These figures are likely to influence the cost of the yen further.

Elsewhere in Asia, Hong Kong’s Hang Seng index gained 1.1%, reaching 17,422.75, while the Shanghai Composite dipped slightly by 0.1%, closing at 2,714.77. China’s forthcoming monthly economic report, expected on Saturday, has fueled speculation.

Analysts predict that key indicators, including industrial production, fixed asset investment, and retail sales, will reveal a slowdown.

In other Asian markets, Australia’s S&P/ASX 200 rose by 0.3% to 8,096.00, while South Korea’s Kospi slipped 0.1%, landing at 2,568.41.

U.S. Influence on Asian Stock Sentiment

The influence of U.S. markets was felt in the Asian region. On Thursday, the S&P 500 climbed by 0.7%, closing at 5,595.76, putting it within 1.3% of its all-time high set in July. The Dow Jones Industrial Average gained 0.6%, reaching 41,096.77, and the Nasdaq composite rose by 1%, ending at 17,569.68.
Nvidia played a key role in boosting the S&P 500, with its stock increasing by 1.9%, contributing to a near 16% gain for the week. Despite concerns earlier this summer that investor excitement around artificial intelligence had driven Nvidia’s stock too high, recent stability has eased those fears.

Economic reports from the U.S. indicated that unemployment benefit claims rose slightly last week, although they remain historically low. Additionally, wholesale prices were reported to be 1.7% higher in August compared to the previous year.

This marked a slowdown from July’s inflation rate, but a closely watched underlying measure of inflation ticked up more than expected, keeping traders cautious.

Energy markets also saw some movement, with U.S. crude oil gaining 31 cents, reaching $68.28 per barrel, and Brent crude rising to $72.28 per barrel. Meanwhile, in currency trading, the euro edged up to $1.1086.