Asia-Pacific markets higher tracking gains on Wall Street; Hong Kong stocks hit 8-month high
Japan (NKY:IND) +0.41%. The gauge for Japan’s service sector unexpectedly was down to 47.4 in April 2024 from 49.8 in the previous month, missing market consensus of 50.4.
Japan’s current account surplus increased to JPY 3,398.8 billion in March 2024 from JPY 2,360.0 billion in the same month a year earlier.
Domestically, data showed that household spending in Japan fell 1.2% year-on-year in March, milder than the 2.4% decline expected by analysts.
The value of loans in Japan increased 3.1% year-on-year in April 2024, slowing from a 3.2% growth in March which was the fastest pace in ten months.
China (SHCOMP) +0.01%. The Biden administration took action on Thursday by adding 37 Chinese entities to a trade restriction list, including those accused of supporting the spy balloon that flew over the United States last year, a move that has escalated tensions between Beijing and Washington.
Meanwhile, investors eagerly await key inflation figures from China to assess the economy’s health and monetary policy trajectory.
Hong Kong (HSI) +2.30%. The Hang Seng is pointing to a third straight weekly gain, up around 1.3%, and increasing for the second session to hover at their highest in eight months, as China reportedly was considering a dividend tax waiver.
India (SENSEX) +0.24%.
Australia (AS51) +0.35%.
In the U.S., on Thursday, all three major indexes higher as a jump in US weekly unemployment claims reinforced bets for Federal Reserve interest rate cuts. Firmer commodity prices also helped the recourse-heavy bourse as a pullback in the dollar and Treasury yields lifted riskier assets.
Fed Governor Michelle Bowman, Chicago’s Austan Goolsbee, Minneapolis’ Neel Kashkari and Dallas’ Lorie Logan will speak later today.
Markets look toward ongoing US data and comments from other Fed officials for a clearer direction on the interest rate path.
U.S. stock futures edged higher on Friday after a positive session for the major averages, with the Dow extending its winning streak to a seventh day: Dow +0.24%; S&P 500 +0.19%; Nasdaq +0.23%.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).