Asian stocks experienced a mixed day of trading on Friday, with Japan's benchmark Nikkei leading the losses by dropping over 2% in early trading. This decline was influenced by a sharp fall on Wall Street, driven by high expectations.
On the other hand, United States futures and oil prices saw an increase, providing some positive momentum in the market.
Japan’s Nikkei 225 index sank 2.6% to 38,053.67, while the Bank of Japan decided to maintain its benchmark rate at 0.25%, in line with market expectations. The Japanese yen also traded lower against the dollar.
China markets, however, showed resilience amidst the downturn. The Hang Seng in Hong Kong gained 0.8%, and the Shanghai Composite index initially rose in morning trading before slipping slightly in the afternoon.
Notably, factory activity in China rebounded in October, with both official and private surveys indicating growth after five consecutive months of contraction.
Australia’s S&P/ASX 200 dropped 0.5% following a rise of 3.9% year-on-year in its producer price index for the third quarter.
South Korea’s Kospi and Taiwan’s Taiex also experienced losses, with the latter weighed down by a decline in Taiwan Semiconductor Manufacturing Corp., a key supplier for Apple.
In the U.S., major indices like the S&P 500, Dow Jones, and Nasdaq faced significant declines, with technology giants like Microsoft and Meta Platforms reporting better-than-expected profits but seeing their stocks fall.
The bond market saw Treasury yields edge lower after a mixed set of reports on the U.S. economy, including a slowdown in inflation and wage growth.
Meanwhile, U.S. benchmark crude oil prices rose, with Brent crude also surging in international trading.
Overall, the global market remains volatile, with various economic indicators influencing investor sentiment and trading patterns.
