Asian markets trade mixed after Wall Street climbs closer to its record high
HONG KONG — Asian shares were mixed on Friday as US stocks edged closer to their records after a a few economic reports that came in close to expectations.
US futures were little changed and oil prices rose.
Japan’s benchmark Nikkei 225 fell 0.9% to 36,491.80 in morning trading, after rising 3.4% on Thursday.
The Japanese yen strengthened against the dollar, pushing USD/JPY down to 141.05 from 141.79 in early trading on Friday, putting pressure on Japanese exports.
“The Bank of Japan is not expected to make a rate change at its meeting next week, but there could be aggressive pricing so policymakers can lay the groundwork for further rate hikes in December and beyond,” said IG market analyst Yeap Jun Rong.
Later on Friday, Japan’s industrial production figures will be released, reflecting demand in the industry, which could further impact the cost of the yen.
Hong Kong’s Hang Seng rose 1.1% to 17,422.75, while the Shanghai Composite fell 0.1% to 2,714.77.
China is expected to release its monthly economic figures on Saturday, with markets predicting that three major indicators – industrial production, fixed asset investment and retail sales – will show a slowdown.
Elsewhere, the Australian S&P/ASX 200 rose 0.3% to 8,096.00. South Korea’s Kospi fell 0.1% to 2,568.41.
Thursday is the S&P500 rose 0.7% to 5,595.76, coming within 1.3% of July’s record after a shaky summer. It’s on track for its fourth winning week in the past five.
The Dow Jones Industrial Average rose 0.6% to 41,096.77 and the Nasdaq Composite rose 1% to 17,569.68.
Nvidia was the strongest force lifting the S&P500, rose another 1.9% to bring its gain for the week to nearly 16%. Shares of the chip company have stabilized recently after falling more than 20% over the summer on concerns that investors had overextended themselves in their frenzy over artificial intelligence.
The number of U.S. workers filing for unemployment benefits rose last week, according to a report, though it remains relatively low compared to history. Another report said wholesale prices rose 1.7% in August from a year earlier. That was a slowdown from inflation in July, but an underlying measure that economists see as a better predictor of future trends also rose more than expected.
The inflation data was similar to Wednesday’s report on U.S. consumer prices, prompting traders to bet the Fed would deliver a traditional quarter-percentage-point cut next week, rather than the larger half-point some had expected.
Lower interest rates boost the economy and investment prices, but they can also fuel inflation.
In the bond market, the yield on the 10-year Treasury note edged up to 3.68% from 3.66% on Wednesday night, stabilizing somewhat after falling since April on expectations of coming rate cuts. That easing helped push the average rate on a 30-year mortgage in the U.S. to its lowest level this week lowest level in 19 monthsaccording to Freddie Mac.
In energy trading, U.S. benchmark crude rose 31 cents to $68.28 a barrel. Brent crude, the international standard, rose 31 cents to $72.28 a barrel.
The euro cost $1.1086, up slightly from $1.1074.
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Stan Choe, a staff writer with AP Business Writers, contributed from New York.