Gold prices steady above $3,400/oz on rate cut bets; PCE data awaited
Investing.com-- Most Asian stocks tread water on Friday amid fresh concerns over U.S. trade tariffs after President Donald Trump announced steep duties against Canada, while Chinese markets outperformed on bets of more stimulus measures.
Overnight gains in Wall Street largely failed to spill over into regional markets, with U.S. stock futures also turning negative in Asian trade, after Trump announced a 35% tariff on Canada. He had earlier this week announced tariffs against several major economies, including 25% tariffs each on South Korea and Japan.
S&P 500 Futures fell 0.4% in Asian trade, Google (NASDAQ:GOOGL) data showed.
China, Hong Kong stocks surge on stimulus hopes, upbeat outlook
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.7% and 0.6%, respectively, while Hong Kong’s Hang Seng index added 1.6%. All three were up between 1.6% and 2.5% this week.
Stocks were buoyed by buying into sectors most likely to benefit from more stimulus measures, such as consumer goods and industrials. Bets on more Chinese stimulus measures were furthered by middling inflation data released earlier this week.
Sentiment towards Hong Kong was boosted by Goldman Sachs upgrading its rating on the region to Market-Weight, citing expectations of easing monetary policy and lower U.S. tariffs than initially feared.
Biolotechnology major WuXi AppTec Co (HK:2359) soared 10.5% after it forecast a sharp increase in its profit for the first half of 2025. The stock was the top performer on the Hang Seng index, Google data showed.
Major Hong Kong technology stocks also clocked strong gains, tracking an overnight rise in their U.S. peers after market darling Nvidia (NASDAQ:NVDA) closed above a $4 trillion valuation.
Tech shares remained underpinned by optimism over sustained artificial intelligence demand going into the second half of 2025.
Tech gains saw South Korea’s KOSPI vastly outpace its regional peers this week, with an over 4% bounce. But the index fell slightly on Friday.
Asian stocks drift lower as Trump tariff caution builds
Broader Asian markets also retreated on Friday, as Trump’s Canada tariffs sparked renewed fears of his trade agenda.
Japan’s Nikkei 225 and TOPIX indexes fell between 0.1% and 0.3%, while Australia’s ASX 200 index shed 1.5%.
Gift Nifty 50 Futures for India’s Nifty 50 index fell 0.2%, pointing to a negative open for the index. Traders were still holding out for a trade deal between the U.S. and India, after Trump claimed earlier this week that an agreement was close.