Asian stocks climbed on Friday, setting the stage for a strong finish to August, while the dollar faced its worst monthly performance in nine months amid expectations that the Federal Reserve is almost certain to cut interest rates next month.
Key economic indicators due later on Friday, including the US core personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — and eurozone inflation data, are in focus and could provide further insight into the interest rate outlook for major economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.77%, putting it on track for a 2.3% gain for the month. Japan’s Nikkei, having rebounded from its early August slump, was still set for a 1.6% monthly decline but managed a 0.3% increase on Friday afternoon.
Chinese stocks surged on Friday from near seven-month lows, with property stocks showing strong gains. The CSI 300 Real Estate index jumped over 8%, while Hong Kong’s Hang Seng Mainland Properties Index rose by 7%.
On Wall Street, a late-afternoon dip by some Big Tech firms pared back gains, resulting in a mixed finish for US stock indexes on Thursday. The S&P 500 ended flat after nearly reaching a 1% gain earlier. The benchmark index remains about 1.3% shy of its record high set in July.
The Dow Jones Industrial Average gained 0.6%, marking its third all-time high since Monday. The tech-heavy Nasdaq Composite slipped 0.2% after being up as much as 1.3% earlier in the day.
In the bond market, the yield on 10-year US Treasury notes rose to 3.87%, up from 3.84% late Wednesday.
