Tokyo, June 3 (BNA): Asian stocks rose on Friday amid mixed signals to investors such as higher energy prices and easing of COVID-19 restrictions in China, the Associated Press reported.
Trading in China has been closed for the Dragon Boat Festival, a national holiday. Standards rose in the rest of the region, to cheers from an overnight rise on Wall Street.
Market players are closely watching the US non-farm employment data later in the day, as well as a slew of economic data in Japan next week. The OPEC meeting, in which oil-producing countries decided to increase some production, failed to significantly stabilize energy prices.
Japan and the United States have signed a review of the “beef protection” mechanism under the US-Japan Trade Agreement, which will help US beef producers meet Japan’s growing demand for high-quality beef.
Both sides said the agreement would reduce the chances of Japan imposing protective duties on US beef. It happened in early 2021.
Japan’s Nikkei 225 index jumped 1.1% in morning trading to 27712.43. Australia’s S&P/ASX 200 rose 0.7% to 7226.70, while South Korea’s Kospi rose 0.4% to 2,668.95.
Stocks on Wall Street beat off a shaky start to close broadly higher on Thursday, as major indexes offset losses earlier in the holiday week.
The S&P 500 rose 1.8% to 4176.82, with more than 85% of stocks in the benchmark gaining. The Dow Jones Industrial Average rose 1.3% to 33248.28, while the Nasdaq rose 2.7% to 12,316.90.
Tech companies, whose lofty values tend to give the broader market a stronger push up or down, contributed a large share of Thursday’s rally. Chip maker Nvidia jumped 6.9% and software maker Adobe rose 5.5%.
Telecom stocks, companies that rely on direct consumer spending and some major industrial companies gained. Facebook’s parent Meta Platforms rose 5.4%, Expedia Group added 6.3%, and Boeing rose 7.5%.
Small-cap stocks rose, indicating confidence in economic growth. The Russell 2000 Index rose 2.3% to 1,897.67.
Rising energy prices have fueled inflation, which is already at its highest levels in four decades. US gasoline prices hit another record high Thursday, with an average pump price of $4.71 a gallon, according to the AAA Auto Club.
Investors remain focused on the balance between inflation, higher interest rates, and economic growth. Several economic reports on Wednesday reinforced expectations that the Federal Reserve will continue to raise interest rates aggressively. Wall Street is concerned that the Fed may slow economic growth too much
Bond yields have been relatively stable. The yield on the 10-year Treasury, which helps determine interest rates on mortgages and other loans, fell to 2.91% from 2.93% late Wednesday.
In energy trading, benchmark US crude was down 23 cents at $116.64 a barrel. International benchmark Brent crude fell 12 cents to $117.49 a barrel.
In currency trading, the US dollar fell to 129.82 yen from 129.87 yen. The euro traded at $1.0765, up from $1.0752.
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