Asian shares rose on Friday, with the Nikkei 225 and Kospi gaining, despite a decline on Wall Street. Chinese factory activity showed weakening, but speculation arose that Beijing may implement growth-friendly policies. Hong Kong’s Hang Seng index and Shanghai Composite also saw increases. The S&P/ASX 200 in Australia rose, while Wall Street experienced a late May downturn.
Investors are focused on the Federal Reserve’s preferred gauge of inflation and the tail end of earnings reports. Salesforce and Kohl’s saw significant losses, while Nvidia, Best Buy, and Foot Locker reported better-than-expected profits. Treasury yields eased, providing relief after concerns about tepid demand for Treasury bonds earlier in the week. Reports showed the U.S. economy may not be as strong as anticipated, potentially leading to a cut in the federal funds rate.
C3.ai and HP saw gains after topping profit and revenue expectations. Many retailers are reporting, with Dollar General and Build-A-Bear Workshop both experiencing fluctuations in their stock prices based on earnings reports. Concerns about high inflation impacting consumer spending continue to linger. U.S. benchmark crude oil prices dropped, with the U.S. dollar also falling against the Japanese yen and euro.
Overall, the market remains optimistic despite various economic indicators suggesting potential challenges ahead. Investors are closely watching for any signs of policy changes from central banks to mitigate the impact of weakening economic conditions. As the global economy continues to navigate uncertainties, the response from policymakers and market reactions will be crucial factors influencing future investment decisions.
