- Asian markets mostly rose on Friday, led by Japan's Nikkei and South Korea's Kospi gains
- US stocks surged over 1%, boosting Asian investor sentiment ahead of US jobs data release
- Fed's Waller signaled data-dependent rate decisions, lowering September hike odds to 50.4%
Asian Markets Today: Asian markets were mostly trading higher on Friday, the final trading session of the week, with investors taking cues from a strong Wall Street rally and easing expectations of a US Federal Reserve rate hike. The Nikkei and Kospi led gains, while the Topix was the only major regional index trading lower.
At last check, Japan's Nikkei 225 was up 0.9%, while the Topix slipped 0.26%. South Korea's Kospi climbed 1.42%, Australia's ASX 200 gained 0.07%, and New Zealand's NZX 50 rose 0.59%.
The gains across Asian markets came after all three major US stock indexes closed more than 1% higher on Thursday.
The Dow Jones Industrial Average rose 624.16 points, or 1.18%, to 53,686.11, while the S&P 500 gained 1.06% to 7,747.71. The Nasdaq Composite advanced 1.40% to 26,584.06.
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Why Are Asian Markets Rising Today?
Sentiment improved after Federal Reserve Governor Christopher Waller said he would be inclined to keep interest rates unchanged if upcoming economic data confirms that inflationary pressures are easing.
Waller also said he would support a rate hike if inflation fails to cool, keeping the Fed's next policy decision data-dependent. His comments, however, led markets to scale back expectations of a September rate hike.
According to CME's FedWatch tool, the probability of a Fed rate hike at the September meeting fell to 50.4% from 63.2% on Wednesday.
The pullback in rate-hike expectations also helped US Treasury yields decline for a second straight session after the benchmark yield had recently touched its highest level since November 2023.
US Jobs Data In Focus
Investors are now awaiting the US Labor Department's August employment report, due later on Friday.
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The US economy is expected to have added 56,000 jobs in August, while the unemployment rate is forecast to remain unchanged at 4.1%. The data could provide fresh clues on the Fed's interest-rate path and influence global equity markets.
Thursday's US economic data was broadly positive, with jobless claims remaining low and services activity accelerating. However, services input prices rose to their highest level since October 2022, while the US international trade deficit widened 24.4%.
Oil Prices, Middle East Tensions
Oil prices were little changed on Friday amid escalating tensions between US and Iran. Last checked, Brent was trading 0.07% to 95.75 a barrel.
Meanwhile, oil prices were largely steady on Thursday as tensions between the US and Iran continued to weigh on sentiment.
Brent crude futures fell 11 cents to settle at $95.52 a barrel, after briefly crossing $97 during the session. WTI crude gained 29 cents to settle at $91.30 a barrel.
Iran continued strikes against US Gulf allies, with Kuwait reporting that its air defences had intercepted incoming missiles and drones. US oil prices have gained more than 9% this week amid renewed military tensions between Washington and Tehran.
Energy Secretary Chris Wright reportedly said more than 17 million barrels of oil moved through the Strait of Hormuz on Monday under US military protection, highlighting the importance of the key oil transit route.
US President Donald Trump, meanwhile, indicated that he did not expect the latest hostilities to escalate into a prolonged war.
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