Asian stock markets showed mixed performance on Friday, following a slight retreat on Wall Street, as investors grappled with ongoing uncertainties tied to U.S. President Donald Trump’s policies.
U.S. futures were little changed, and oil prices saw an uptick as trading resumed.
In China, markets declined for the second consecutive day, with the Hong Kong Hang Seng Index dropping 2% to 23,733.02 after the People’s Bank of China opted to maintain its key lending rates. Investor sentiment remained subdued, particularly in the technology sector, following recent rallies. The Shanghai Composite Index also fell by 0.9% to 3,376.96.
Meanwhile, Japan’s Nikkei 225 edged up 0.5% to 37,933.13 after a brief holiday pause. Japan’s core inflation rate showed a smaller-than-expected decline, partly driven by a surge in rice prices due to supply shortages.
In other Asian markets, South Korea’s Kospi gained 0.1% to 2,643.59, while Australia’s S&P/ASX 200 rose by 0.4% to 7,947.30. The SET in Bangkok saw a modest gain of 0.5%, while Taiwan’s Taiex slid 0.4%.
In the U.S., the S&P 500 fell 0.2% to 5,662.89, while the Dow Jones Industrial Average lost 0.1%, closing at 41,953.32. The Nasdaq composite dropped 0.3% to 17,691.63. Wall Street has been on a volatile ride in recent weeks, driven by concerns over the economic impact of Trump’s trade war and the overall direction of U.S. policy. However, market sentiment was buoyed midweek after Federal Reserve Chair Jerome Powell assured that the economy remained strong enough to maintain current interest rates.
Further supporting this view, reports on Thursday revealed that U.S. unemployment claims were lower than expected, while housing sales and manufacturing activity exceeded forecasts. Still, Powell highlighted the extreme uncertainty surrounding the trade war and potential federal budget cuts, complicating economic forecasts.
The U.S. stock market’s recent downturn, which saw prices fall more than 10% from their peak, is widely seen as a natural correction after a rapid rise that had made stocks appear overvalued relative to corporate earnings.
Among individual stocks, Darden Restaurants rose 5.8%, after posting quarterly profits that met analysts’ expectations, despite what the company described as a “challenging environment.” On the other hand, Accenture saw a 7.3% drop, despite reporting stronger-than-expected profits and revenues. Investors are concerned about the potential impact on Accenture’s business due to proposed cuts in U.S. government spending, as the federal government accounted for 17% of its North American revenue last year.
Across the Atlantic, the UK’s FTSE 100 edged down by 0.1%, following the Bank of England’s decision to keep interest rates unchanged.
In commodity markets, U.S. benchmark crude oil rose 31 cents to $68.38 per barrel, while Brent crude, the international standard, gained 27 cents to $72.27 per barrel.
The U.S. dollar strengthened against the Japanese yen, rising to 149.40 yen from 148.78 yen. The euro, however, saw a slight dip, falling to $1.0831 from $1.0854.
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