Most Asian equity markets posted modest gains on Friday, tracking a mixed close on Wall Street overnight. Investors remained cautious ahead of closely watched U.S. jobs data, which could influence expectations around future interest rate cuts by the Federal Reserve.
U.S. markets ended Thursday with mixed results. Technology stocks retreated after recent advances, putting pressure on the Nasdaq, while the Dow Jones and S&P 500 finished near flat. Wall Street index futures showed little movement during Asian trading hours on Friday.
Asian Markets Mixed as Japan Outperforms
Asian stocks reflected the cautious global mood, with limited gains and losses across the region as weakness in the tech sector weighed on sentiment.
South Korea’s KOSPI index traded mostly flat after reaching record highs earlier in the week on strong chipmaker performance. Shares of Samsung Electronics and SK Hynix fell between 1.5% and 3%.
Australia’s S&P/ASX 200 rose 0.3%, while Singapore’s Straits Times Index was largely unchanged. Futures linked to India’s Nifty 50 also showed little movement.
Japanese equities stood out as regional outperformers. The Nikkei 225 climbed 1%, while the broader TOPIX index added 0.3%. Gains were supported by a weaker yen, which improved the outlook for export-focused companies.
Investor attention remained firmly on the U.S. nonfarm payrolls report due later Friday, which is expected to provide clearer signals on the health of the U.S. economy and the Fed’s policy direction.
China Inflation Reaches Three-Year High
In China, fresh economic data pointed to tentative signs of improving demand. Official figures released Friday showed consumer inflation accelerating to its highest level in nearly three years.
China’s consumer price index rose 0.8% year on year in December, marking its fastest pace in around 34 months. Monthly inflation increased 0.2%. Producer price deflation also moderated, suggesting some stabilization in factory-gate prices.
The data raised hopes that China may be nearing the end of a prolonged deflationary phase that has weighed on economic growth, corporate profits, and consumer spending.
China’s CSI 300 index gained 0.3%, while the Shanghai Composite advanced 0.6%. Hong Kong’s Hang Seng Index traded flat.
