HONG KONG (AP) — Asian markets exhibited a mixed performance on Friday following a decline on Wall Street, as investors grappled with the uncertainties stemming from U.S. President Donald Trump.
U.S. futures remained relatively stable, with oil prices experiencing an uptick.
Chinese exchanges fell for a second consecutive day, with Hong Kong’s Hang Seng index plummeting 2% to 23,733.02 after China decided to maintain its key lending rates. Traders have been offloading technology stocks following recent recoveries.
The Shanghai Composite Index decreased by 0.9% to 3,376.96.
In Tokyo, the Nikkei 225 gained 0.5% to reach 37,933.13 as trading resumed after a holiday on Thursday. Japan’s core inflation rate reported a smaller decline than anticipated, partially driven by a rise in rice prices due to supply shortages.
In other Asian markets, South Korea’s Kospi index rose by 0.1% to 2,643.59, and Australia’s S&P/ASX 200 increased by 0.4% to 7,947.30.
Bangkok’s SET index gained 0.5%, while Taiwan’s Taiex index fell by 0.4%.
On Thursday, the S&P 500 edged down 0.2% to 5,662.89, while the Dow Jones Industrial Average dipped slightly by less than 0.1% to 41,953.32. The Nasdaq Composite slid 0.3% to 17,691.63.
Wall Street has been on a volatile journey for weeks, as stock values fluctuate in response to concerns about the implications of Trump’s trade policies for the economy. Stocks gained a temporary boost on Wednesday after the Federal Reserve Chair indicated that the economy is solid enough to justify keeping interest rates steady.
Additional data released on Thursday supported that notion. One report indicated that fewer U.S. workers filed for unemployment benefits last week than economists had forecasted.
Another report revealed stronger-than-expected sales of previously owned homes in the last month, while a third indicated that manufacturing growth in the mid-Atlantic region appears to surpass economists’ expectations.
Fed Chair Jerome Powell emphasized on Wednesday that extensive uncertainty is complicating predictions for the future, pertaining not only to the trade conflict but also the potential effects of plans to reduce U.S. federal government size.
The overall U.S. stock market has likely been due for its recent downturn, which has seen it drop over 10% from its all-time high in a matter of weeks, especially after prices rose much more rapidly than corporate profitability, creating an impression of overvaluation.
On Wall Street, shares of Darden Restaurants climbed by 5.8% after the company reported quarterly profits that aligned with analysts’ expectations, despite labeling the market as “a challenging environment.” The company operates Olive Garden, Ruth’s Chris Steak House, among others.
Conversely, Accenture experienced one of the larger declines on the market, despite reporting marginally better than expected profit and revenue for the latest quarter. Concerns arose regarding the potential revenue hit from U.S. government contracts as Elon Musk spearheads efforts to cut federal spending, which previously accounted for 17% of Accenture’s North American revenue last fiscal year, leading its stock to fall by 7.3%.
