As concerns over a U.S. recession and labor market slowdown eased, global shares rebounded in Asia, tracking gains on Wall Street. Stocks across Japan, South Korea and Australia rose while Hong Kong equities maintained their gains. However, stocks in China lost momentum as the market attributed the better-than-expected inflation report to seasonal factors. Markets were closed in Singapore.
U.S. stock futures rose in Asia, following a rally on Wall Street on Thursday as U.S. recession fears subsided. The S&P 500 had its best day since November 2022, rising 2.30 percent to 5,319.31, as of 7:45 GMT. Meanwhile, the Nasdaq Composite increased by 2.87 percent to 16,660.02.
U.S. labor market concerns cool
The U.S. dollar index declined 0.05 percent to 103.16 while U.S. 10-year Treasury yields dipped to 3.97 percent.
The number of Americans filing new applications for unemployment benefits declined more than anticipated last week, easing fears about a slumping labor market and a U.S. recession. This raised investors’ risk appetite with the focus now shifting to upcoming U.S. economic data including the U.S. consumer price index (CPI) and producer price index (PPI) due next week.
“The storm clouds have parted for the time being for Asian markets,” said Tony Sycamore, market analyst at IG Australia.
Read: U.S. stocks dip amid weak 10-year Treasury demand, Nasdaq down 1.05 percent
Asian shares recover
In Japan, Tokyo Electron Ltd shares jumped 0.70 percent after the company lifted its profit forecast for the fiscal year to March and reported a better-than-expected surge in sales. Super Micro Computer shares rose 3.5 percent to $509.94.
Japan’s broader Topix index also witnessed a 0.88 percent rise to 2,483.30, while the Nikkei 225 index inched up 0.56 percent to 35,025.
Market uncertainty still remains as investors continue to digest different signals from policymakers. Fed Bank of Kansas City President Jeffrey Schmid recently indicated he is not ready to support a reduction in interest rates with inflation above the target.
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