Asian stock markets mostly advanced on Friday, building on gains from earlier in the week, while U.S. stocks showed signs of fatigue after their post-election surge following Donald Trump’s victory continued to lose momentum.
U.S. futures and oil prices also posted declines.
In Japan, the Nikkei 225 index rose by 0.8%, closing at 38,842.13, as a weakening yen supported export-driven companies. Nissan Motor Co. saw a significant boost, with shares climbing 4.7% in morning trading.
Japan’s economy expanded at a stronger-than-expected pace of 0.9% year-on-year for the July-September quarter, up from 0.5% growth in the previous quarter. Despite this growth, the Bank of Japan raised its key interest rate to 0.25% from 0.1% in July and indicated plans to continue tightening policy, with an eye on reaching 1% in the second half of the next fiscal year, starting in April, assuming economic conditions remain favorable.
In Hong Kong, the Hang Seng index gained 0.3%, reaching 19,486.97, while mainland China’s Shanghai Composite index slipped 0.4% to 3,367.94. Economic data released Friday showed that China’s retail sales grew by 4.8% year-on-year in October, surpassing expectations. However, industrial output slowed, and the recovery in the property sector appeared marginal.
Australia’s S&P/ASX 200 increased by 0.7%, closing at 8,279.20, while South Korea’s Kospi inched up by 0.2% to 2,407.27.
In the U.S., the S&P 500 dropped by 0.6% on Thursday to 5,949.17, still hovering near its all-time high reached earlier in the week. The Dow Jones Industrial Average fell 0.5% to 43,750.86, and the Nasdaq Composite slipped 0.6% to 19,107.65.
Shares of companies that had previously benefited from Trump’s election win, including Tesla, experienced significant losses. Tesla dropped 5.8%, marking its second loss since Election Day. Smaller companies, represented by the Russell 2000 index, saw even greater declines, falling by 1.4%. This shift contrasts with the initial optimism following Trump’s election, when investors anticipated that his “America First” policies would favor domestically focused businesses over large multinationals.
The bond market also played a role in market movements, as yields fluctuated in response to stronger-than-expected economic data and remarks from Federal Reserve Chair Jerome Powell. Despite the Fed’s recent rate cuts, Powell’s comments indicated that the economy was showing strength, and further rate cuts may not be imminent. The two-year Treasury yield, sensitive to expectations for Fed actions, rose to 4.35% from 4.28%.
A report released earlier on Thursday showed that U.S. wholesale inflation had accelerated in October, rising 2.4% year-over-year, up from September’s 1.9%. Additionally, data suggested that the U.S. job market remains robust, with fewer workers filing for unemployment benefits, signaling that layoffs remain contained.
In the commodities markets, oil prices softened. U.S. benchmark crude fell by 62 cents to $68.08 per barrel, while Brent crude, the international benchmark, dropped 66 cents to $71.90 per barrel.
Currency markets saw modest movements, with the U.S. dollar rising to 156.32 yen from 156.23 yen, while the euro edged up slightly to $1.0543 from $1.0534.
Related topics:
