MANILA – Asian markets showed mixed results on Friday as investors looked forward to a crucial U.S. inflation report, with recent technology stock surges on Wall Street propelling the market to a fresh all-time high.
U.S. futures and oil prices slipped.
In Tokyo, the Nikkei 225 decreased by 0.2% to 42,744.80 following the release of data indicating Japan’s factory output declined in July due to increased tariffs affecting U.S. exports. Tokyo’s inflation rate slowed to 2.6% year-on-year, while the unemployment rate dropped to 2.3% in July from 2.5% in June.
“Today’s Japanese data presented a mixed outlook, with disappointing industrial production posing a threat to third-quarter growth, even as a tight job market suggests potential wage increases and steady underlying inflation,” commented ING Economics. “We continue to believe October is the most probable time for a Bank of Japan rate hike.”
In Chinese stock exchanges, Hong Kong’s Hang Seng index increased by 0.7% to 25,179.39, and the Shanghai Composite index slightly rose by 0.2% to 3,849.76. Meanwhile, shares of computer chipmaker Cambricon Technologies dipped on Friday after climbing 15.7% to 1,587.91 yuan ($222) a day prior, marking the highest-priced stock on Shanghai’s exchange.
“The rapid expansion within China’s tech scene increasingly resembles a zero-sum game rather than a clear growth path. Even Cambricon’s AI chip narrative, the highlighted topic of the week, is now signaling cautionary red flags due to trading risks following an 8% decline,” stated Stephen Innes from SPI Asset Management.
South Korea’s KOSPI shed 0.1% to 3,193.05, while Australia’s S&P/ASX 200 edged 0.1% lower to 8,973.30.
Taiwan’s TAIEX was up 0.5% while India’s BSE Sensex fell less than 0.1%.
On Thursday, the S&P 500 ascended by 0.3%, pushing the benchmark index to its second consecutive record high. The Dow Jones Industrial Average overcame an initial downturn and gained 0.2%, surpassing its record high from last Friday.
The Nasdaq composite closed 0.5% higher, finishing just short of its all-time high set two weeks ago.
Gains in the technology and communication services sectors offset losses elsewhere in the market.
Tech giant Nvidia fell 0.8% a day after reporting quarterly earnings and revenue that beat Wall Street analysts’ forecasts, though the company noted that sales of its artificial intelligence chipsets rose at a slower pace than analysts anticipated.
Traders also had their eye on new government reports on the job market and economy.
The Labor Department reported that applications for unemployment benefits fell last week, the latest sign that employers are holding onto their workers even as the economy has slowed.
The most recent government data suggests hiring has slowed sharply since this spring.
Meanwhile, the Commerce Department reported that U.S. gross domestic product —- the nation’s output of goods and services — grew at a 3.3% annual pace in the April-June quarter after shrinking 0.5% in the first three months of this year due to the fallout from the Trump administration’s trade wars.
Still, the sluggishness in the job market is a key reason that Federal Reserve Chair Jerome Powell signaled last week that the central bank may cut its key interest rate at its meeting next month.
Friday will bring another update on inflation: the U.S. personal consumption expenditures index. Economists expect it to show that inflation remained at about 2.6% in July, compared with a year ago. Businesses have been warning investors and consumers about higher costs and prices because of tariffs.
In other dealings on Friday, U.S. benchmark crude lost 43 cents to $64.17 per barrel. Brent crude, the international standard, slid 41 cents to $67.57 per barrel.
The U.S. dollar rose to 146.98 Japanese yen from 146.95 yen. The euro fell to $1.1662 from $1.1684. ___ AP Business Writer Alex Veiga contributed.
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