Asian stock markets saw gains on Friday, building on positive trends despite a slight cooling in the U.S. stock market’s recent rally following Trump’s election win. U.S. futures and oil prices experienced minor dips, but broader investor sentiment remained upbeat.
Japan’s Nikkei 225 rose by 0.8% to 38,842.13, with a weakening yen boosting exporters’ performance. Shares of Nissan Motor Co. climbed significantly, increasing by 4.7%. Japan’s economic growth for the July-September quarter accelerated to 0.9%, supported by higher domestic activity, even as the Bank of Japan raised its interest rate to 0.25%. The central bank indicated plans for further rate hikes, potentially reaching 1% in the next fiscal year if economic conditions align with projections.
In Hong Kong, the Hang Seng Index gained 0.3%, while China’s Shanghai Composite fell by 0.4%, influenced by mixed economic data. October’s retail sales in China outpaced expectations, growing 4.8%, but industrial output slowed and the property sector showed minimal recovery. Australia’s S&P/ASX 200 advanced by 0.7%, and South Korea’s Kospi edged up by 0.2%.
U.S. markets, however, showed modest declines on Thursday. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all dipped between 0.5% and 0.6%, while smaller stocks were more significantly affected, as the Russell 2000 index fell by 1.4%. The market reflected a shift from earlier optimism tied to Trump’s election, which initially boosted smaller, domestically-focused companies.
Bond yields fluctuated following Federal Reserve Chair Jerome Powell’s comments that the economy remains robust and does not require immediate rate cuts. The two-year Treasury yield rose slightly, reflecting cautious investor sentiment. Economic reports showed mixed signals, with wholesale inflation accelerating more than expected in October, but the job market remaining resilient as unemployment claims fell.
Oil prices fell during electronic trading, with U.S. crude dropping to $68.08 per barrel and Brent crude declining to $71.90. Meanwhile, currency markets saw the dollar strengthen against the yen, and the euro edged higher against the dollar.
Global markets continue to navigate a mix of optimistic growth signals and cautious monetary policy adjustments. While U.S. markets experienced some pullback, Asian indices showed resilience, reflecting a dynamic yet stabilising global economic environment.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
