EU and US could reach trade deal this weekend - Reuters
Investing.com-- Most Asian stocks fell on Friday, but were headed for strong weekly gains as they benefited from increased optimism over U.S. trade tariffs and artificial intelligence.
Regional markets took middling cues from Wall Street’s overnight session, where the US500 and the IXIC eked out record highs in an otherwise muted session. Optimism over strong earnings from Alphabet (NASDAQ:GOOGL) was also seen wearing thin.
S&P 500 Futures rose 0.2% in Asian trade.
Japan, Hong Kong lead weekly gains
Japanese shares were by far the best performers this week, having surged to near record highs after Tokyo and Washington announced a trade deal. But mixed inflation data offset some cheer over Japanese shares on Friday.
Japan’s Nikkei 225 and TOPIX indexes fell 0.5%-0.6% on Friday, but were trading up over 4% each for the week. The TOPIX hit a record high on Thursday, while the Nikkei was close to record highs last seen in July 2024.
Tokyo consumer inflation data for July showed a slightly bigger-than-expected easing in prices. But core inflation still remained above the Bank of Japan’s 2% annual target, keeping uncertainty over the central bank’s rate hikes largely in play.
Hong Kong’s Hang Seng index fell 0.7% on Friday, but was trading up 3.3% this week. The Hang Seng was boosted chiefly by an extended rally in technology stocks, as investors welcomed the prospect of regaining access to chips from Nvidia (NASDAQ:NVDA), which are a major factor in AI development.
Broader cheer over AI, following positive earnings from Alphabet, also kept tech stocks relatively upbeat, although the sector was seen losing momentum in recent sessions.
Asia stocks lose steam after strong week
Broader Asian markets largely retreated on Friday, but were headed for a strong week.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.4% and 0.2%, respectively, but were trading up over 2% each this week.
Focus is on China’s Politburo meeting, a convening of top political leaders, for more cues on the economy. The meeting was supposed to be convened in late-July.
South Korea’s KOSPI was an outlier for the day, rising 0.3% following some positive earnings. But the index was only trading up 0.3% this week, amid growing uncertainty over a trade deal with the United States.
Australia’s ASX 200 fell 0.5%, and was trading down nearly 1% this week amid heavy profit-taking from recent record highs. The ASX was also dented by somewhat mixed signals from the Reserve Bank of Australia on when it will cut interest rates next.
Singapore’s Straits Times index fell 0.4% after hitting a series of record highs. The index was also up 1.4% this week, its fifth straight week of gains.
Gift Nifty 50 Futures for India’s Nifty 50 index rose 0.1%. But the Nifty struggled to hold levels above 25,000 points this week, as earnings from heavyweights such as Infosys (NSE:INFY) failed to impress.