Asia-Pacific stock markets rose on Friday, following the rise of Wall Street, due to growing expectations that the cycle of monetary tightening by the Federal Reserve (Fed) is nearing its end.
Stats showing a slowdown in U.S. producer price growth and a larger-than-expected increase in jobless claims confirmed that the U.S. central bank’s rate hike is weakening inflation in the United States and restraining economic growth.
Japan’s Nikkei 225 stock index was up 1.2 percent in trading, following an increase in retailer stocks.
Fast Retailing, which owns the Uniqlo brand, gained 8.5 percent on strong results at the close of trading on Thursday. Fast Retailing increased its net profit and revenue in the first fiscal half of the year and improved its outlook for the full year.
Shares of other Japanese retailers are also up, with Seven & I Holdings up 1.8 percent, Treasure Factory up 9.6 percent and Lawson up 6 percent.
China’s Shanghai Composite stock index added 0.4% in trading, while Hong Kong’s Hang Seng gained 0.1%.
China’s economic growth rate will reach the government’s target of 5 percent in 2023, People’s Bank of China (PBOC) governor Yi Gang said during a meeting of G20 central bank chiefs in Washington.
“China’s economy is stabilizing and recovering, inflation remains low, and the real estate market is showing positive changes,” said Yi Gang, quoted on the NBK website.
Leading the rise in mainland China are stocks of technology companies and battery makers, as well as raw materials for them. Contemporary Amperex Technology Co. gained 2.1%, Tianqi Lithium 6.3%, Ganfeng Lithium 6.2% and China National Software 2.9%.
In Hong Kong, shares of Geely Automobile Holdings (+3.5%), BYD Co. (+1%) and Anta Sports Products (+1.8%) rose. Meanwhile, Meituan (SPB: 3,690) (-1.8%), Tencent (SPB: 700) Holdings (-0.3%) and Sunny Optical Technology Group (-1.1%) are getting cheaper.
South Korea’s KOSPI added 0.53% in trading and Australia’s S&P/ASX 200 gained 0.48%.
Commonwealth Bank of Australia shares gained 1%, National Australia Bank – 1.1%, Fortescue Metals – 0.9%. At the same time, BHP Group securities fell by 0.1%.
