Asian stock markets experienced mostly upward trends on Friday, despite generally negative signals from Wall Street overnight. This was due in part to unexpectedly high U.S. consumer price data, which dampened hopes that the U.S. Federal Reserve would aggressively cut interest rates in the foreseeable future. Meanwhile, Chinese markets dipped as investors awaited potential fiscal stimulus announcements slated for Saturday. However, Asian markets had predominantly advanced on Thursday.
In reaction to the economic data, Raphael Bostic, President of the Atlanta Federal Reserve, expressed to the Wall Street Journal his openness to maintaining current interest rates in November.
According to CME Group's FedWatch Tool, there is currently an 84% likelihood that the Federal Reserve will reduce rates by 25 basis points next month, following a 50 basis points cut implemented last month.
The Australian stock market faced slight declines amidst volatility on Friday, reversing gains from the two preceding sessions due to negative cues from Wall Street. The S&P/ASX 200 index approached the 8,200 mark, hindered by weaknesses in iron ore and financial sectors, though partially bolstered by increases in gold miners, technology, and energy stocks correlating with rising crude oil and bullion prices.
On Friday, the benchmark S&P/ASX 200 Index fell by 10.60 points, or 0.13%, to 8,212.40, having previously reached a low of 8,200.00. The broader All Ordinaries Index decreased by 8.40 points, or 0.10%, to 8,490.30. Australian markets had modestly surged on Thursday.
Regarding major mining corporations, BHP Group and Rio Tinto each saw losses nearing 1%, Fortescue Metals descended by more than 1%, whereas Mineral Resources gained almost 1%.
Oil stocks mostly advanced; Woodside Energy rose over 1%, Santos gained nearly 1%, and Origin Energy and Beach Energy inched higher by between 0.1% and 0.4%.
In the technology sector, Block, the owner of Afterpay, climbed over 3%, while Xero and Zip approached 1% gains. WiseTech Global experienced a decrease nearing 1%, and Appen remained stable.
As for the four major banks, Commonwealth Bank saw nearly a 1% decline, whereas National Australia Bank, ANZ Banking, and Westpac slipped by 0.2% to 0.4%. Gold miners primarily showed positive movement; Evolution Mining, Newmont, and Northern Star Resources grew by nearly 2% each, while Resolute Mining advanced over 3% and Gold Road Resources increased by over 2%.
In the currency exchange domain, the Australian dollar traded at $0.674 on Friday.
Continuing gains from the previous two days, Japan’s stock market saw notable increases on Friday despite Wall Street's downward cues. The Nikkei 225 index rose above the 39,600 threshold, bolstered by growth across most sectors, led by major index players and financial entities.
The Nikkei 225 Index concluded the morning session at 39,612.82, up by 231.93 points or 0.59%, after peaking at 39,662.42 earlier. Japanese stocks had closed with slight increases on Thursday.
In corporate performance, SoftBank Group decreased by almost 1%, whereas Fast Retailing, Uniqlo's parent company, rose by more than 3%. Among automobile manufacturers, Honda increased nearly 1%, with Toyota inching up by 0.5%.
In the technology realm, Advantest saw a gain of over 1%, while Tokyo Electron and Screen Holdings each advanced by nearly 1%.
For the banking sector, Mitsubishi UFJ Financial and Mizuho Financial each climbed 1.5%, with Sumitomo Mitsui Financial rising by over 2%.
Concerning major exporters, Mitsubishi Electric and Canon declined by almost 1% each; Sony fell by more than 1%, whereas Panasonic saw a slight increase of 0.4%.
Among other significant gainers, Fujikura rose by over 3%, with Dai-ichi Life Holdings and Chugai Pharmaceutical advancing nearly 3% each. Meanwhile, there were no noteworthy significant decliners.
Economically, Japan's M2 money stock rose by 1.3% year-on-year in September, as reported by the Bank of Japan on Friday, aligning with August’s figures, though slightly short of the 1.5% forecast. On a month-to-month basis, M2 increased by 1%, up from 0.6% in the previous month.
In the foreign exchange market, the U.S. dollar traded in the higher 148 yen range on Friday.
Elsewhere across Asia, Taiwan showed a 1.2% increase, with New Zealand, Singapore, South Korea, and Indonesia rising between 0.1% and 0.6% each. Conversely, China and Malaysia witnessed declines of 1.5% and 0.2%, respectively. Hong Kong markets remained closed for the Double Ninth Festival.
On Wall Street, stocks experienced modest declines during Thursday’s trading session, retreating after a strong performance in the previous session. Major indexes, including the Dow and S&P 500, have pulled back from their recent record closing highs.The primary indices demonstrated an upward trajectory nearing the close of the trading session, though they retained negative standings. The Dow Jones Industrial Average declined by 57.88 points, or 0.1%, settling at 42,454.12. Similarly, the Nasdaq Composite fell by 9.57 points, or 0.1%, closing at 18,282.05, while the S&P 500 decreased by 11.99 points, or 0.2%, finishing at 5,780.05.
In European market activity, a downward trend was observed across key indices. The FTSE 100 Index in the United Kingdom experienced a minor decline of 0.1%. Meanwhile, both the French CAC 40 Index and the German DAX Index registered a decrease of 0.2%.
Crude oil prices surged significantly on Thursday, driven by concerns over rising geopolitical tensions in the Middle East, which overshadowed any existing uncertainties regarding future demand projections. Futures for West Texas Intermediate Crude, for November delivery, increased by $2.61, or approximately 3.56%, concluding the session at $75.85 per barrel.