Asian Markets Mixed as Wall Street Retreats Amid Uncertainty

Asian Markets Mixed as Wall Street Retreats Amid Uncertainty

Asian markets displayed a mixed performance on Friday, following Wall Street's retreat due to uncertainties surrounding U.S. President Donald Trump's policies.

China's Markets Decline

Chinese markets experienced a second consecutive day of decline. Hong Kong's Hang Seng Index tumbled 2%, while mainland Chinese markets remained closed for a holiday. The decline was attributed to a combination of factors, including China's decision to keep its key lending rates unchanged and profit-taking after recent gains in technology stocks.

Japan and Korea See Modest Gains

In contrast, Japan's Nikkei 225 index rose 0.5% after the market reopened following a holiday. This increase was partly attributed to a lower-than-expected decline in Japan's core inflation rate. South Korea's Kospi index also experienced a modest gain of 0.1%.

Australia and Southeast Asia Show Mixed Performance

Australia's S&P/ASX 200 index rose by 0.4%, while Thailand's SET index gained 0.5%. However, Taiwan's Taiex index fell by 0.4%.

Wall Street's Rollercoaster Ride Continues

On Thursday, Wall Street experienced another volatile session, with the S&P 500 slipping 0.2%, the Dow Jones Industrial Average dipping less than 0.1%, and the Nasdaq composite falling 0.3%. This volatility is attributed to ongoing uncertainty about the potential impact of Trump's trade war on the U.S. economy.

Economic Data Provides Mixed Signals

Despite the market's uncertainty, several economic reports released on Thursday provided mixed signals. One report indicated that fewer Americans filed for unemployment benefits than expected, while another showed stronger-than-expected sales of previously occupied homes. Additionally, a third report suggested that manufacturing growth in the mid-Atlantic region is exceeding expectations.

Fed Chair Highlights Uncertainty

Federal Reserve Chair Jerome Powell emphasized the high level of uncertainty surrounding the economic outlook, citing concerns about the trade war and potential government spending cuts. This uncertainty is contributing to the market's volatility.

Darden Restaurants Climbs, Accenture Falls

Darden Restaurants, the company behind Olive Garden and other restaurant chains, saw its stock price rise 5.8% after reporting earnings that met analysts' expectations. However, Accenture, a consulting and professional services company, experienced a significant decline of 7.3% due to concerns about potential revenue losses from the U.S. government.

Global Markets Update

In other global markets, Britain's FTSE 100 index fell 0.1% after the Bank of England kept interest rates unchanged. U.S. benchmark crude oil gained 31 cents to $68.38 per barrel, while Brent crude, the international standard, rose 27 cents to $72.27 per barrel. The U.S. dollar strengthened against the Japanese yen, while the euro weakened slightly.