Investing.com-- Most Asian stocks rose on Friday, with Japanese shares rising past strong inflation data as a drop in Treasury yields offered markets some relief, although concerns over U.S. fiscal health remained in play.
Regional shares tracked some overnight gains in their U.S. peers, which benefited from a reversal in Treasury yields. But yields still remained relatively high, with Wall Street clocking a muted finish as the progress of a sweeping tax cut and spending bill kept fiscal concerns in play.
S&P 500 Futures rose marginally in Asian trade, although Wall Street was still set to lose between 1.5% and 2% this week.
Treasury yields had shot up this week on concerns over high government debt levels, especially after Moody’s downgraded the U.S. sovereign rating. This trend weighed heavily on risk-driven assets, with a bulk of Asian bourses set for weekly losses.
Japan shares firm past strong CPI data
Japan’s Nikkei 225 and TOPIX indexes rose 0.8% each on Friday, even as consumer price index inflation data read stronger than expected for April.
Core CPI inflation surged to an over two-year high, as a recent hike in local wages helped boost private spending.
The reading boosted the yen and Japanese bond yields, given that stronger inflation gives the Bank of Japan more headroom to raise interest rates.
But the strong CPI data also reflected improving Japanese consumer spending, which could help buoy economic growth in the coming months.
Japanese shares largely rose past the prospect of higher interest rates, with gains in local chipmaking and technology stocks also boosting the Nikkei.
Chinese stocks set for positive week, others less upbeat
Chinese markets mostly outperformed their regional peers this week, benefiting from persistent cheer over a U.S. tariff deescalation, as well as signs of more stimulus support from Beijing.
The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose slightly on Friday, and were trading up 0.9% and 0.5% for the week, respectively.
Hong Kong’s Hang Seng rose 0.5% on Friday and was set for a 1.1% weekly gain, despite a swathe of middling earnings from major Chinese internet firms.
Chinese markets benefited from persistent optimism over a U.S. trade war deescalation, even as Beijing railed against Washington’s chip restrictions. A cut to the loan prime rate earlier this week also spurred hopes of more stimulus from Beijing.
Other Asian markets were less upbeat for the week, with Japan’s Nikkei trading down 1.4% amid pressure from a stronger yen.
India’s Nifty 50 was set for a muted open on Friday, and was also trading down 1.6% this week after a recent rush to seven-month highs was followed by several sessions of profit-taking.
Australia’s ASX 200 rose 0.3% on Friday and was set for a mild weekly increase, as it benefited from dovish signals from the Reserve Bank of Australia.
South Korea’s KOSPI rose 0.1% on Friday and was set to lose 1.6% this week, hit chiefly losses in major tech shares. Singapore’s Straits Times index fell 0.2% and was down 0.7% this week.