Asian stock markets were mixed on Friday, with optimism over potential US rate cuts offset by concerns about trade tensions and economic uncertainty.
The movement followed Wall Street’s modest declines overnight, where major indices fluctuated before closing slightly lower.
Investors continued to assess the impact of Federal Reserve signals on rate cuts and the potential economic fallout from US tariffs.
Japan’s Nikkei rebounds after holiday
Japanese stocks traded higher in post-holiday trade, recovering from two consecutive sessions of losses.
The Nikkei 225 rose 0.34% to 37,881.72, after hitting an intraday high of 37,968.36.
Market heavyweight SoftBank Group gained over 2%, while Fast Retailing added nearly 1%. Toyota edged down 0.1%, while Honda rose by 1%.
The gains came as data showed Japan’s core inflation slowed to 3% in February, down from 3.2% in January, but still above expectations of 2.9%.
The inflation report strengthened the case for further rate hikes by the Bank of Japan, which has been monitoring rising prices closely.
Hong Kong and China stocks on Friday
Hong Kong stocks extended their sharpest pullback in three weeks, as recent gains driven by China’s AI sector optimism were tempered by disappointing earnings results.
The Hang Seng Index declined 0.3% to 24,143.22, trimming its weekly gains to just 1%.
On the mainland, the CSI 300 Index and Shanghai Composite Index both added 0.1%, as investors digested China’s decision to keep key lending rates unchanged.
Other Asian markets
The Australian stock market continued its upward momentum, with the S&P/ASX 200 rising 0.38% to 7,949.20.
Gains in energy and financial stocks supported the index, helping it stay well above the 7,900 level.
Earlier in the session, the index touched a high of 7,950.40 and a low of 7,905.10.
South Korean stocks edged higher late Friday morning, supported by gains in major semiconductor shares, while some investors took profits after recent advances.
The benchmark Korea Composite Stock Price Index (KOSPI) was up 0.17%, at 2,641.52.
Wall Street recap: stocks end lower amid rate and tariff worries
US markets closed slightly lower on Thursday, as investors weighed the Federal Reserve’s stance on rate cuts against concerns about economic growth and tariffs.
The Nasdaq declined 0.3% to 17,691.63, while the S&P 500 fell 0.2% to 5,662.89. The Dow Jones Industrial Average slipped 11.31 points to 41,953.32.
Fed policymakers maintained interest rates but reiterated expectations for two cuts by year-end.
However, they lowered their 2025 GDP growth forecast to 1.7% from 2.1% and raised the inflation outlook for this year to 2.7% from 2.5%.
Fed Chair Jerome Powell acknowledged that tariffs were a key driver of higher inflation expectations.
Markets remain on edge as US President Donald Trump is expected to announce new reciprocal tariffs next month, which could further impact global trade and economic growth.
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