Asian Stocks Rise Ahead of U.S. Jobs Data
Most Asian markets moved higher on Friday, wrapping up a volatile week as investors awaited the release of U.S. nonfarm payrolls data for more direction on interest rates. Optimism over lower rates also lifted Wall Street, with the S&P 500 closing at a record high on Thursday. S&P 500 futures gained 0.2% in Asian trade.
Japanese Stocks Lead on Trade Optimism
Japan’s Nikkei 225 rose 0.8%, while the TOPIX added 0.4%, supported by trade optimism. The Nikkei was up 0.4% for the week.
Sentiment improved after President Donald Trump signed an executive order to implement a U.S.–Japan trade deal, which will cut tariffs on Japanese goods, particularly in the automobile sector.
Economic data also helped. Household spending and wage growth beat expectations in July, showing resilience in Japan’s economy. However, sticky inflation may prompt the Bank of Japan to consider additional rate hikes in the months ahead.
Chinese Stocks Struggle After August Rally
China’s CSI 300 rose 0.9%, the Shanghai Composite gained 0.4%, and Hong Kong’s Hang Seng added 0.5% on Friday. Still, mainland Chinese stocks lagged peers this week, set for a 2.6% weekly loss after strong August gains.
Profit-taking weighed on markets following last month’s rally, fueled by stimulus hopes and optimism over AI self-reliance initiatives. Recent PMI data showed resilience, while trade and inflation reports next week will offer more economic cues.
The Hang Seng was up 0.3% this week, supported by strength in technology shares.
Broader Asia Sees Mixed Performance
Elsewhere in Asia, Australia’s ASX 200 rose 0.4%, while Singapore’s Straits Times Index added 0.3%. South Korea’s KOSPI was flat.
India Set for Weekly Gains on Tax Cuts
India’s Nifty 50 slipped 0.3% in morning trade. Despite a 1.4% drop in August due to U.S. tariffs of 50%, Indian equities found support from government tax cuts aimed at boosting private spending.
Optimism over the tax relief put the Nifty on track for a 1% weekly gain, limiting deeper losses compared to other Asian peers.
