Asia Stocks Mixed After Wall Street Hits Record Highs
Asian markets ended mixed on Friday as gains on Wall Street lifted regional sentiment, while local economic data and political tensions kept some investors cautious.
The MSCI Asia-Pacific index outside Japan rose about 0.3 percent, supported by overnight strength in U.S. equities. The S&P 500 and Dow Jones Industrial Average both closed at fresh highs, driven by investor confidence in artificial intelligence and technology-related sectors, even after chipmaker Nvidia posted results that missed elevated forecasts.
In China, the market showed a split performance. The CSI 300 index gained around 0.7 percent, led by financial and energy shares.
However, the STAR 50 index fell 2.5 percent after a sharp decline in Cambricon Technologies, which slumped following a regulatory warning. Hong Kong’s Hang Seng index climbed 0.5 percent, extending moderate gains.
Japan’s Nikkei 225 dropped nearly 0.4 percent as weaker factory output and slowing inflation dampened risk appetite. Although unemployment edged lower, the mixed data weighed on investor sentiment.
Indonesia’s financial markets faced sharp losses amid growing political unrest. Student protests in Jakarta, triggered by the death of a demonstrator during a parliamentary traffic incident, unsettled traders. The Jakarta Composite Index slipped more than 2 percent, its steepest fall in over two weeks, while the rupiah weakened nearly 1 percent to 16,475 per U.S. dollar. Bank Indonesia responded by announcing interventions in currency markets and bond purchases to stabilize the economy.
Globally, the U.S. dollar softened as expectations for a Federal Reserve interest rate cut in September increased. Market estimates now put the probability of easing at about 86 to 87 percent, following dovish comments from Fed Governor Christopher Waller. Political developments in Washington also added uncertainty, with President Donald Trump’s move to replace Fed Governor Lisa Cook prompting legal action.
Commodity markets traded lower, with Brent crude oil slipping to $68.15 per barrel and gold declining to about $3,410 per ounce.
Investors are now turning their attention to the U.S. Personal Consumption Expenditures (PCE) price index, due later today, which is expected to provide clearer signals on inflation and guide the Federal Reserve’s next policy move.
