Asian stock markets edged mostly higher on Wednesday in subdued trading, following a decline on Wall Street triggered by disappointing U.S. economic data.
Investors are closely monitoring corporate earnings reports to gauge the impact of U.S. President Donald Trump’s tariffs on businesses. Japanese automakers Honda Motor Co. and Toyota Motor Corp., along with electronics and entertainment giant Sony Corp., are set to release their first-quarter results this week.
Japan’s Nikkei 225 gained 0.6% to close at 40,794.86, while Australia’s S&P/ASX 200 added 0.8% to 8,843.70. South Korea’s Kospi saw little movement, rising less than 0.1% to 3,198.14. Hong Kong’s Hang Seng increased 0.2% to 24,958.75, and China’s Shanghai Composite advanced 0.8% to 3,633.99. U.S. futures rose 0.5%.
Global shares edge higher after Wall Street slide on weak US jobs data
On Tuesday, the S&P 500 fell 0.5% to 6,299.19, ending a volatile period that saw the index swing between its best and worst daily performances since May. The Dow Jones Industrial Average slipped 0.1% to 44,111.74, and the Nasdaq Composite dropped 0.7% to 20,916.55.
A weaker-than-expected report on U.S. service sector activity heightened concerns over the economic impact of tariffs, but also raised hopes for a potential Federal Reserve interest rate cut. Strong corporate profits helped limit losses, keeping the S&P 500 within 1.4% of its record high.
Market focus remains on companies delivering strong profits amid concerns that recent gains have made stocks expensive. A possible interest rate cut in September could boost stocks further, though it risks increasing inflation.
Following the weaker jobs report last week, Treasury yields fell significantly and have not rebounded. The 10-year Treasury yield declined to 4.19% from 4.22% earlier and 4.39% before the jobs data release.
In energy markets, U.S. crude oil rose 57 cents to $65.73 per barrel, while Brent crude gained 64 cents to $68.28 per barrel. The U.S. dollar strengthened slightly against the Japanese yen to 147.66 yen, while the euro slipped to $1.1575.
Sourcer: Agency