Stock markets in Asia showed mixed results on Friday following a rally on Wall Street that brought the S&P 500 close to its record high.
In Tokyo, Sydney, and Seoul, stock benchmarks declined, while in China, investors awaited the release of April inflation data.
Japan’s Finance Ministry reported a record current account surplus for the fiscal year ending in March, driven by strong auto exports and solid returns on overseas investments. However, weak consumer spending offset some of these gains.
Japan’s Nikkei 225 fell by 0.3% to 38,073.98 after initially trading higher. Australia’s S&P/ASX 200 dropped 1.1% to 7,720.00, and South Korea’s Kospi declined 1.1% to 2,715.95.
On the other hand, Hong Kong’s Hang Seng rose by 1% to 18,504.56, while the Shanghai Composite increased by 0.7% to 3,150.51.
Investors are closely watching upcoming price data to gauge the economy’s momentum moving forward.
NYSE (Via Riley Jacks/Shutterstock)
“Despite ongoing efforts, China has been grappling with consumer deflation for approximately a year, posing a significant challenge that Beijing has yet to overcome,” commented Stephen Innes, managing partner at SPI Asset Management.
On Thursday, the S&P 500 closed 0.5% higher at 5,214.08. The Dow Jones Industrial Average gained 0.8% to 39,387.76, and the Nasdaq composite added 0.3% to 16,346.26.
A report showing an increase in layoffs provided some support to the market. While the number of workers filing for unemployment benefits last week was higher than expected, it remains relatively low compared to historical levels.
This could indicate that the economy is navigating towards a delicate balance: remaining strong enough to avoid a severe recession but not excessively strong to drive up inflation pressures.
