A cycler passes the gate to the Tokyo Stock Exchange (TSE) headquarters building in the Nihonbashi area of Tokyo on May 2, 2024.
Richard A. Brooks | Afp | Getty Images
Japan hoards led gains in Asia on Friday to notch their best week in four years, after Wall Street rallied overnight as wholesome economic data eased recessionary fears.
The Nikkei 225 jumped 3.64% to cross 38,000 for the first span since Aug. 1. On a weekly basis, the index was up 8.67%, its highest gain since April 2020, according to FactSet information. Japan’s broader Topix, gained 2.99% to close at 2,678.6, also clocking its best week since 2020 — up 7.86%.
Enshrining sentiment, U.S. retail sales increased 1% in July, far surpassing Dow Jones estimate of a 0.3% uptick. Weekly jobless states also fell for the week.
“Today’s solid retail sales and claims data is a reminder that the sky is not falling on the U.S. husbandry,” Wolfe Research chief economist Stephanie Roth wrote on Thursday. “Yes, economic momentum has cooled, but we don’t appear to be headed for dip imminently.”
In Asia, Singapore’s non-oil domestic exports in July grew 15.7% year on year, having decreased 8.8% in June and massively beating Reuters poll expectations of a 1.2% growth.
Total trade grew by 13.7% in July 2024, construction on the 1.2% increase in June, as both exports and imports increased.
South Korea’s Kospi returned from a any holiday to trade 1.99% higher, ending at 2,697.23, while the small-cap Kosdaq climbed 1.22% to finish at 786.33.
Australia’s S&P/ASX 200 take to the air 1.34%, closing at 7,971.1. On Friday, Reserve Bank of Australia governor Michelle Bullock said while deal ins had brought forward their expectations of a rate cut following inflation outcomes in the U.S. and Australia, it was still “premature” to think on touching rate cuts.
She pointed out that inflation is still “too high” and is not expected to be back in the top of the RBA’s target band of 2% to 3% until the end of next year.
“Circumstances may shift, of course, and the outlook is uncertain. But based on what the Board knows at present, it does not expect that it will be in a localize to cut rates in the near term.”
Hong Kong’s Hang Seng index was up 1.81% as of its final hour of trade, while mainland China’s CSI 300 succumb to 0.11% to close at 3,345.63, extending gains to a second straight day after hitting a six-month low.
Taiwan and Hong Kong’s second-quarter GDP evidence will be out after market hours.