Shares in Asia were mostly higher on Friday, with major markets showing modest gains, except for Shanghai and Taiwan. U.S. futures and oil prices also rose, following a mixed day on Wall Street where general stocks and other previously struggling sectors saw gains, while Big Tech stocks experienced losses.
In Tokyo, the Nikkei 225 index slipped 0.5% after early gains, while Tokyo's core consumer price index rose 2.2% in July, signaling potential interest rate adjustments by the Bank of Japan. Hong Kong's Hang Seng edged higher, while the Shanghai Composite index dipped slightly. Australia's S&P/ASX 200 and Seoul's Kospi both posted gains, but Taiwan's Taiex fell sharply after reopening following a typhoon-induced closure.
In Bangkok, the SET rose, and India's Sensex also gained. On Wall Street, the S&P 500 and Nasdaq composite closed lower, while the Dow Jones Industrial Average rose. The Russell 2000 index of smaller stocks saw a significant jump, outperforming larger stocks in the S&P 500.
The market was impacted by declines in Big Tech stocks, particularly after disappointing profit reports from Tesla and Alphabet. However, positive economic data boosted hopes for smaller companies and other neglected market sectors. The U.S. economy showed accelerated growth in the second quarter, easing concerns about inflation.
Traders anticipate rate cuts by the Federal Reserve to alleviate market pressures, with expectations of a rate cut in September. This news buoyed investor sentiment, particularly in stocks tied to economic strength. Airline stocks surged after American Airlines Group and Southwest Airlines reported strong profits, while Ford Motor faced a significant decline due to lower-than-expected earnings.
In early trading, U.S. benchmark crude oil prices rose, with the dollar weakening against the Japanese yen and the euro strengthening. Overall, market movements reflected a mix of positive economic indicators, corporate earnings reports, and anticipation of central bank actions.
