Asian stocks traded firm on Friday with all the major regional bourses and indicators gaining from Thursday’s close. Recent comments from U.S. government and Fed officials on the expected decline in inflation by the year-end and the assurance of no hurrying on interest rate increases continued to buoy stock market sentiment.
Chinese stocks followed the upbeat sentiment at Wall Street the day ago. The Shanghai Composite Index closed trade at 3607.56 after adding 41 points or 1.15 percent from Thursday’s close.
The Japanese benchmark Nikkei 225 added 190.95 points or 0.66 percent from Thursday’s levels to end the week at 29066.18 amidst reports that showed increase in CPI from 101.40 to 101.70 and decline in preliminary data on Manufacturing PMI from 53 to 51.5. Mazda gained 6.24 percent followed by Fujikura which added 5.14 percent. Eisai was the biggest trailer with a 3.39 percent decline followed by Kawasaki Kisen which fell 0.90 percent.
The Hang Seng Index of the Hong Kong Stock Exchange gained 412.37 points or 1.43 percent in the day’s trade. The day’s high was at 29313 and the day’s low level was at 28948.
The Korean Stock Index Kospi closed at record high of 3302.84 after adding 16.74 points or 0.51 percent from Thursday’s close. Sentiment was supported by the strong reading of 98, the highest since April 2011 in the Business Survey Index.
The S&P/ASX200, Australia’s leading share market index closed trade at 7308 after gaining 32.70 points or 0.45 percent. Boral gained 6.38 percent whereas Kogan.com gained 6.09 percent. Nuix declined by 3.91 percent whereas Pilbara Minerals lost 3.88 percent. The index is now trading around 1.33 percent lower than the 52-week high of 7406.20.
New Zealand’s S&P NZX 50 index gained 0.31 percent over Thursday’s close to end trade at 12626.09 as cues from the U.S. on the infrastructure deal and the dovish stance by Fed officials supported positive sentiment. Markets shrugged off the decline in trade surplus to NZD 469 million in May 2021 compared to NZD 1,294 million a year ago attributed to the 31 percent surge in imports and the 5.8 percent growth in exports. Comvita rallied by 4.88 percent followed by DGL Group which gained 3.70 percent. Vista Group International lost the maximum as it declined 3.29 percent. Bankers Investment Trust plc also declined more than 3 percent in the day’s trade.
On Thursday, the Nasdaq 100 had closed at 14366 after gaining 0.64 percent from previous close whereas the Dow Jones Industrial Average had finished trade at 34197 after rallying 0.95 percent from the previous day. Sentiment remained strong at the Wall Street bourses following President Biden’s infrastructure deal and the earlier dovish comments by Treasury Secretary Janet Yellen and Fed Chair Powell.
Asian markets have closed the week’s trade in anticipation of further economic data that will be released next week with the onset of a new month and a new quarter. In addition to the domestic economic indicators, traders are anxiously awaiting the Private Consumption Expenditure data to be released by the U.S. Bureau of Economic Analysis later today. Core PCE, considered an important gauge of inflationary pressures in the economy is expected to set directional cues to global markets in the coming week.
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