Asian shares trade higher after mixed trading on Wall Street

TOKYO — Asian shares rose broadly on Friday as markets remained moderately optimistic about the prospects of technology companies and the relative health of the global economy.

Japan’s benchmark Nikkei 225 rose 0.5% to 38,566.40 after data from the world’s fourth-largest economy was mostly positive.

Industrial production rose 2.8% in July from the previous month, up from -4.2% in June, the Ministry of Economy, Trade and Industry said. That was weaker than market expectations but a sign of growth. In other findings, the unemployment rate rose to 2.7% in July from 2.5% in June.

Consumer prices in Tokyo rose more than expected to 2.6% year-on-year in August, up from 2.2% in July, as food and utility prices surged. That will almost certainly draw the attention of the Bank of Japan, which is considering whether to raise interest rates. The move is expected later this year or early next year.

Australia’s S&P/ASX 200 rose 0.3% to 8,071.90. South Korea’s Kospi rose 0.6% to 2,677.19. Hong Kong’s Hang Seng rose 1.8% to 18,100.00, while the Shanghai Composite rose 1/3% to 2,860.89.

On Wall Street, a decline in several big technology companies was broken on Thursday evening, erasing earlier gains. US stock indexes ended with mixed results.

The S&P 500 ended flat after giving up an earlier gain of almost 1%. The benchmark index is about 1.3% away from the record set in July.

The Dow Jones Industrial Average gained 0.6%, good for its third all-time high since Monday. The Nasdaq composite, which is heavily weighted with technology stocks, fell 0.2%. It had started trading up 1.3%.

Despite the mixed results, there were about twice as many gainers as decliners on the New York Stock Exchange.

Nvidia, which has fueled the artificial intelligence frenzy and become one of the world’s largest manufacturers,&The P 500 most influential companies were the worst hit in the market, with shares falling 6.4% despite stellar second-quarter results. The stock, with a total market value of more than $3 trillion, is still up 138% in 2024.

In a bit of positive news, the Commerce Department raised its assessment of U.S. economic growth for the second quarter to 3%, up from a previous estimate of 2.8%. It’s another sign that the economy remains strong despite pressure from persistent inflation and high interest rates.

The mostly solid earnings and economic growth updates cap a month of encouraging reports for the broader economy. Data from multiple reports in August showed that retail sales, employment and consumer confidence remained strong.

“Solid consumer spending growth propelled the economy forward in the second quarter, and the increase in consumer confidence in July suggests it will continue to boost growth in the second half of the year,” said Bill Adams, chief economist at Comerica Bank.

The most important report of the week comes on Friday, when the U.S. government releases its July inflation numbers, the PCE, or personal consumption and expenditures report. Economists expect the PCE, the Federal Reserve’s preferred inflation measure, to show inflation rising slightly to 2.6% in July, from 2.5% in June. It was as high as 7.1% by mid-2022.

Hopes are growing that the Federal Reserve will cut its benchmark interest rate. Traders expect the first cut to come at its next meeting in September. The market is betting that the Fed will cut its benchmark rate by 1% by the end of the year.

Bond yields rose in the Treasury market, with the yield on the 10-year Treasury rising to 3.86% from 3.84% late Wednesday.

All in all, the S&The P 500 lost 0.22 points to 5,591.96. The Dow rose 243.63 points to 41,335.05. The Nasdaq fell 39.60 points to 17,516.43.

In energy trading, U.S. benchmark crude rose 18 cents to $76.09 a barrel. Brent crude, the international standard, rose 23 cents to $80.17 a barrel.

In currency trading, the US dollar fell to 144.84 Japanese yen from 145.02 yen. The euro was worth $1.1075, down from $1.1082.

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AP Business Writers Damian J. Troise and Alex Veiga contributed. Yuri Kageyama is on X: https://x.com/yurikageyama