Asian Stocks Edge Up After US Gains, Dollar Dips: Markets Wrap
The yen steadied as Japan’s key price measure cooled a tad more than expected, while remaining well above the Bank of Japan’s target.
Asian stocks made a modest gain at the open Friday as a global equity rally gained fresh vigor on strong economic data that eased concerns about the US economy.
The MSCI Asia Pacific Index rose 0.2% at the open. Equity-index futures for US gained after the S&P 500 and Nasdaq 100 set closing highs Thursday. Tech stocks rose as a bullish outlook from Taiwan Semiconductor Manufacturing Co. bolstered confidence in artificial-intelligence spending. Netflix Inc. also reported strong earnings and raised its forecast.
The yen steadied as Japan’s key price measure cooled a tad more than expected, while remaining well above the Bank of Japan’s target. The dollar dipped as Federal Reserve Governor Christopher Waller said policymakers should cut interest rates this month to support a labor market that is showing signs of weakness. Treasuries rose as yields on the 10-year fell for a third day.
The cross-asset moves were a sign of bullish risk appetite a day after speculation President Donald Trump would fire Jerome Powell sent volatility spiking. The gains in equities reflected strong economic data and confidence US companies will deliver robust second-quarter earnings, calming the uncertainty caused by Trump’s tariff war.
“As long as the economy continues to expand and unemployment remains low, then people will continue to spend and the flywheel can keep generating higher profits, which is the engine for higher stock prices,” said Chris Zaccarelli at Northlight Asset Management.
A June advance in US retail sales tempered concerns about weaker consumer spending. Applications for US unemployment benefits declined for a fifth straight week to the lowest since mid-April, showing a resilient job market.
Elsewhere, a White House shift on US chip bans that impacts Nvidia Corp. and Advanced Micro Devices Inc. has spurred talk of a grand tech bargain between Washington and Beijing. Separately, the US Commerce Department imposed preliminary anti-dumping duties on Chinese imports of graphite, a key battery component.
Fed Bank of San Francisco President Mary Daly said it’s reasonable for policymakers to plan on two rate cuts this year, emphasizing that the central bank should not wait too long before moving. Fed Governor Adriana Kugler said officials should keep holding rates steady “for some time,” citing accelerating inflation as tariffs start to boost prices.
Meanwhile, Powell remains under pressure with Representative Anna Paulina Luna saying she is “criminally referring” the Fed chair to the Justice Department to investigate “perjury.” Such referrals by lawmakers are not legally binding.
Powell countered criticism leveled at the central bank by a top White House official over a $2.5 billion renovation project in a letter saying “we take seriously the responsibility to be good stewards of public resources.”
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 9:12 a.m. Tokyo time
Hang Seng futures rose 0.9%
Japan’s Topix was little changed
Australia’s S&P/ASX 200 rose 0.5%
Euro Stoxx 50 futures rose 1.2%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%
The euro rose 0.2% to $1.1620
The Japanese yen was little changed at 148.48 per dollar
The offshore yuan was little changed at 7.1836 per dollar
Cryptocurrencies
Bitcoin fell 0.2% to $119,230.19
Ether rose 1.3% to $3,467.1
Bonds
The yield on 10-year Treasuries declined one basis point to 4.44%
Japan’s 10-year yield was unchanged at 1.555%
Australia’s 10-year yield declined two basis points to 4.33%
Commodities
West Texas Intermediate crude was little changed
Spot gold was little changed
