Most Asian stock markets edged up on Friday, tracking a mixed finish on Wall Street overnight as investors stayed cautious ahead of key U.S. jobs data that could shape expectations for future Federal Reserve interest rate cuts.
U.S. stocks ended Thursday mixed, with technology shares slipping after recent gains, leaving the Nasdaq under pressure while the Dow and S&P 500 finished little changed.
Wall Street index futures were largely unchanged during Asia hours on Friday.
Asia stocks subdued; Nikkei rises
Asian markets mirrored that hesitancy with marginal moves as the tech sector led losses.
South Korea’s KOSPI index was largely flat after hitting record highs earlier this week on chipmaker gains. Samsung Electronics (KS:005930) and SK Hynix (KS:000660) slipped between 1.5% and 3%.
Australia’s S&P/ASX 200 edged up 0.3%, while Singapore’s Straits Times Index traded flat.
Futures for India’s Nifty 50 were also largely unchanged.
In contrast, Japanese equities outperformed the region. The Nikkei 225 index rose 1%, while the broader TOPIX index ticked up 0.3% as the yen weakened against the dollar, boosting the outlook for export-oriented companies.
Looking ahead, investor focus was firmly on the U.S. nonfarm payrolls report due later on Friday, which is expected to provide clearer insight into the strength of the world’s largest economy and the Federal Reserve’s policy outlook.
China Dec CPI hits 3-yr high, PPI deflation eases
In China, official data released on Friday showed consumer inflation rose to its highest level in nearly three years, offering tentative signs of improving demand.
The consumer price index increased 0.8% year on year in December, the fastest pace in about 34 months, while monthly prices rose 0.2%. At the same time, producer price deflation eased, indicating some stabilization in factory-gate prices.
The data indicated that China could be nearing an end to a prolonged deflationary period that has dampened economic growth, squeezed corporate earnings, and restrained consumer spending.
China’s blue-chip Shanghai Shenzhen CSI 300 index gained 0.3%, while the Shanghai Composite rose 0.6%. Hong Kong’s Hang Seng traded flat.
Source: Investing