TOKYO (AP) – Asian stocks experienced a notable rise on Friday in anticipation of an update on the US job market, which provides valuable insights into the economy’s trajectory.
US futures showed an upward trend, while crude oil prices saw a decline.
Tokyo’s Nikkei 225 index climbed 0.5% to 37,730.67, and South Korea’s Kospi surged 1.5% to 2,812.05.
In Hong Kong, the Hang Seng Index dipped 0.4% to 23,817.10, whereas the Shanghai Composite Index edged up 0.1% to 3,385.91.
The Australian S&P/ASX 200 remained relatively unchanged at 8,536.40.
India’s Sensex saw an increase of 0.6%.
On Thursday, the S&P 500 fell by 0.5% to 5,939.30, marking its first decline in four days. We will be running and meeting in May as the index, which is pivotal for many 401(k) accounts, lost some momentum due to record-high profits.
The Dow Jones Industrial Average decreased by 0.3% to 42,319.74, while the Nasdaq Composite sank 0.8% to 19,298.45.
The U.S. Labor Bureau is set to report the number of jobs created in May, surpassing those lost. Wall Street’s predictions lean towards a slower employment rate compared to April.
The resilient job market is a cornerstone of the US economy; however, there are concerns that ongoing uncertainties stemming from President Donald Trump’s On and Off Tariff policies could lead businesses to halt hiring.
Thursday’s report highlighted that more US workers have applied for unemployment benefits than economists anticipated last week. Although these figures remain comparatively low historically, they have reached their highest levels in eight months.
This data coincided with Procter & Gamble, the force behind brands like Pampers and Cascade, announcing cuts of up to 7,000 jobs over the next two years. Consequently, their stock dropped by 1.9%.
Tesla was also a significant market drag, with shares falling 14.3%, cumulatively losing nearly 30% of their value. This slide comes as CEO Elon Musk’s relationship with Trump has soured amid disagreements over the President’s Signature Bill regarding tax cuts and spending. After hours, Tesla shares climbed 0.8%.
Brown Forman, the company behind Jack Daniel and Woodford Reserve, saw its stock plummet 17.9%, marking its worst day since its trading inception in 1972.
Trump has expressed a desire to lower customs, one of the primary reasons for the S&P 500’s fluctuations after recent trade agreements with other nations. The index has sharply rebounded since falling nearly 20% from its record high two months ago, currently resting at an increase of 3.3%.
Trump ignited optimism on Thursday by claiming he had a “very good phone” call with Chinese leadership Xi Jinping about trade, stating that “each of their teams would meet at a location to be determined soon.”
This development has eased tensions after the two largest global economies traded accusations of tariff violations, with their harsh tariffs previously suspended to prevent a potential economic downturn.
The market reacted cautiously to the latest signals from Beijing, remaining unsure about the ongoing fluctuation of Trump’s tariffs.
Among Wall Street’s winners, MongoDB saw a surge of 12.8% after the database company reported stronger profits than analysts had predicted.
Circle Internet Group, a major cryptocurrency issuer based in the US, skyrocketed 168.5% on its first day trading on the New York Stock Exchange.
10-year Treasury yields held steady between 4.37% and 4.40% after a drop from 4.46% earlier in the week.
On Wednesday, yields sharply declined as expectations grew that the Federal Reserve System would need to cut interest rates later this year to support an economy impacted by tariffs.
In other early deals on Friday, US benchmark crude oil fell by 21 cents per barrel to $63.16, and international standard Brent crude dropped 18 cents per barrel to $65.16.
The US dollar rose from 143.49 yen to 143.77, while the euro slipped from $1.1448 to $1.1438.
Source: apnews.com