Asian stock markets showed minimal movement on Friday, as investors awaited key events such as the U.S. nonfarm payrolls data and the Reserve Bank of India's interest rate decision. Wall Street's performance overnight provided neutral cues, while U.S. stock futures remained stable during Asian trading.
Recent interest rate cuts by the Bank of Canada and the European Central Bank bolstered optimism for global monetary easing, supporting risk appetite despite cautious sentiment ahead of major economic data releases.
In India, the Nifty 50 index indicated a slightly positive start following a two-day recovery from sharp losses earlier in the week triggered by unexpected outcomes in the 2024 general elections. The Reserve Bank of India was expected to maintain its policy rates unchanged, emphasizing the country's stable economic outlook despite persistent inflationary pressures.
Japanese stocks, however, edged lower as anticipation grew over the Bank of Japan's potential tightening of monetary policy through reduced bond purchases next week. Mixed economic indicators, including a decline in household spending, tempered expectations amidst signs of rising inflation and improving wages.
Chinese markets experienced declines, with attention focused on upcoming trade data reflecting the country's economic performance. Despite expectations of a rebound in exports driven by strong industrial output, subdued imports due to domestic demand weakness weighed on investor sentiment. Broader Asian markets saw modest gains, with Australia's ASX 200 and South Korea's KOSPI index showing slight increases following holiday-related trading adjustments.
Paraphrasing text from "Investing" all rights reserved by the original author.
