Asian shares were mostly higher on Friday as investors eagerly awaited a report on the U.S. jobs market, with several major markets closed for holidays. Oil prices and U.S. futures were on the rise, while the Japanese yen strengthened against the U.S. dollar due to central bank intervention.
According to the financial newspaper Nihon Keizai Shimbun, the Japanese government has spent an estimated 8 trillion yen (about $50 billion) this week to prevent the yen from slipping further against the dollar. The weaker yen has led to higher prices for imported goods, prompting the Bank of Japan to abandon its negative interest rate policy and raise its benchmark rate.
Marcel Thieliant of Capital Economics suggested that the Bank of Japan may raise rates further, even if its 2% inflation target is not met. The Ministry of Finance has reportedly conducted a forceful round of foreign exchange interventions to prevent the yen from sliding, despite the weaker economic case for doing so.
In other parts of Asia, Hong Kong’s Hang Seng surged 1.7% while Australia’s S&P/ASX 200 gained 0.6%. E-commerce giants like Alibaba and JD.com saw significant gains, driven by news of Chinese leaders taking steps to boost the economy.
On Wall Street, the S&P 500 and the Dow Jones Industrial Average both rose, with the Nasdaq composite jumping 1.5%. Investors are eagerly awaiting the U.S. government’s report on job additions, with economists expecting a slowdown in hiring.
The U.S. economy faces challenges as it navigates high inflation and interest rates. Federal Reserve Chair Jerome Powell recently stated that it may take longer than expected to address inflation concerns. In energy trading, U.S. benchmark crude oil and Brent crude both saw gains in early trading.
Overall, the global economic landscape remains uncertain, with markets closely watching for any signs of recovery or further challenges ahead.
