The Nikkei 225 index was 0.8% higher at 38,842.13, the Hang Seng gained 0.3% to 19,486.97, the Shanghai Composite index declined 0.4% to 3,367.94, S&P/ASX 200 added 0.7% to 8,279.20, while Kospi was 0.2% higher, to 2,407.27
Asian stocks were mostly higher on Friday after US stocks slid as the market’s big rally following Trump’s election victory cooled further.
US futures and oil prices were lower.
The Nikkei 225 index was 0.8% higher at 38,842.13 as the yen continued to decline against the US dollar, fuelling exporters’ sales. Nissan Motor Co.’s shares climbed 4.7% during morning trading.
Japan’s economy grew at a 0.9% annual pace in the July-September quarter, higher than the 0.5% rise in the previous quarter, even as the BoJ raised its key interest rate to 0.25% from 0.1% in July. The BoJ said during its October meeting that it plans to continue raising rates, with a potential target of 1% in the second half of the next fiscal year, which begins in April, if economic activity and prices develop as expected.
The Hang Seng gained 0.3% to 19,486.97 and the Shanghai Composite index declined 0.4% to 3,367.94 after a report from the National Bureau of Statistics (NBS) on Friday showed the nation’s retail sales increased 4.8% year-on-year in October, beating forecasts. But industrial output slowed from the previous month and improvements in the property industry were marginal.
S&P/ASX 200 added 0.7% to 8,279.20, while Kospi was 0.2% higher, to 2,407.27.
On Thursday, the US’ S&P 500 declined 0.6% to 5,949.17, though it is still near its all-time high set on Monday. The Dow Jones Industrial Average tumbled 0.5% to 43,750.86, and the Nasdaq composite skidded 0.6% to 19,107.65.
Some of the stocks that got the biggest jump from Trump’s election lost momentum. Tesla declined 5.8% for just its second loss since Election Day.
Smaller stocks also dropped harder than the rest of the market, and the Russell 2000 index of small stocks stumbled 1.4%. It’s a turnaround from the election’s immediate aftermath, when the thought was that an “America First” president would benefit domestically focused companies more than big multinationals that could be hurt by tariffs and trade wars.
Stocks also felt the impact of swinging yields in the bond market following the latest hotter-than-expected economic reports and comments from Fed Chair Jerome Powell. The Fed just cut its main interest rate earlier this month for the second time this year to ease the pressure on the economy, and investors are eager for more.
