Most Asian stock markets edged higher on Friday, tracking overnight gains on Wall Street, as a drop in U.S. Treasury yields offered some relief. However, concerns over America’s fiscal health persisted after Moody’s downgraded the U.S. sovereign credit outlook, keeping yields elevated and investor sentiment cautious.
Japan’s Nikkei 225 and TOPIX rose 0.8%, brushing off stronger-than-expected inflation data. Core CPI climbed to a two-year high in April, driven by wage growth and consumer spending, fueling expectations of a potential Bank of Japan rate hike. Despite the rate hike risk, gains in chip and tech stocks lifted Japanese equities.
Chinese markets outperformed regional peers, supported by optimism over U.S. tariff deescalation and hopes of more stimulus from Beijing. The Shanghai Composite and CSI 300 rose modestly, securing weekly gains of 0.5% and 0.9%, respectively. The Hang Seng Index also advanced 0.5% on Friday and was up 1.1% for the week, overcoming lukewarm earnings from Chinese internet giants.
Elsewhere, South Korea’s KOSPI inched up 0.1% but remained down 1.6% for the week due to tech sector weakness. Australia’s ASX 200 rose 0.3%, ending the week slightly higher amid dovish cues from the Reserve Bank of Australia. Singapore’s Straits Times Index slipped 0.2% and was down 0.7% for the week.
India’s Nifty 50 was flat Friday and on track for a 1.6% weekly loss following profit-taking after recent highs. While S&P 500 futures edged up in Asian trading, U.S. markets were still on pace to close the week down between 1.5% and 2%, as debt concerns and legislative uncertainty around tax cuts lingered.
Despite regional gains, most Asian indices were headed for weekly losses, reflecting cautious investor sentiment.


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