Free Trial

Asian Equities Higher On Easing US Recession Fears

ASIA STOCKS

Asian markets surged on Friday, buoyed by robust U.S. economic data that eased recession fears and sparked a global equities rally. Japan's Nikkei 225 climbed as much as 2.4%, recovering to the 37,000 for the first time in two weeks, supported by a weaker yen and strong U.S. retail sales figures. The broader Asian market followed suit, with gains in Australia and South Korea, while Chinese stocks showed mixed performance.

  • Japan's benchmark indices are all trading 2-4% higher today, banks again lead the way higher. The rally was fueled by strong U.S. economic data, including better-than-expected retail sales, which eased concerns about a potential recession. The weakening yen also provided a boost, particularly for export-oriented sectors like machinery and electronics. Investor sentiment was further bolstered by signs of stability in the U.S. market and positive reactions to recent domestic corporate earnings. The Nikkei is on track for its best week since April 2020, currently trading 3% higher, while the TOPIX is 2.52% higher.
  • South Korean stocks are also higher today with the KOSPI up 2%, while the KOSDAQ is lagging although still 1.20% higher, the moves have been driven by eased U.S. recession concerns and strong gains across major sectors. Big-cap stocks led the rally, as Samsung Electronics advanced 2.46%, while SK hynix surged 6.16%, while autos have also jumped between 2-5%. Foreign investors played a key role, injecting $455 million into local equities so far today, particularly in tech stocks.
  • Similar to SK, Taiwan's equity market is higher with TSMC contributing the most to the index gains, up 2%.
  • Australian equities are higher, although underperforming other region markets. Financials & Materials are the top performers. Earlier, RBA gov Bullock ruled out rate cuts this year, after concerns that inflation is falling very slow. The ASX200 is 1.25% higher today. New Zealand equities are 0.30% today.
  • In the Asia EM space, all markets are higher with Indonesia's JCI up 0.40%, Singapore's Strait Times 1.15% higher, Malaysia's KLCI up 0.50%, Philippine's PSEi is up 1.70% higher.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.