Asian stocks rise on easing recession fears, positive China inflation By Investing.com
Investing.com– Asian stocks rose on Friday amid subdued fears that a US recession is imminent, while inflation data from China also helped boost sentiment.
But regional markets were still heading for weekly losses after marking a sharp decline earlier in the week.
Asian stocks led the way from Wall Street, as better-than-expected jobless claims data fueled hopes that the US labor market was not in the doldrums as initially feared.
US stock index futures rose slightly in Asian trade.
Chinese markets are lagging, but CPI data is a good read
China and the index rose 0.3% each, well below most of their Asian peers. Both indexes are down about 0.8% this week, the third straight week of losses.
But inflation data from the country showed improving trends. inflation grew more than expected, while inflation fell at a slower pace than expected.
The reading showed that a series of interest rate cuts by the People's Bank until July were bearing some fruit, although it remains to be seen whether China's monetary easing trend will be reversed further.
Sentiment on Chinese markets has turned sour in recent weeks, following a series of weak economic figures from the country. The country's benchmark indices remain near six-month lows.
Japanese stocks rise, paying more for weekly losses
Japan and indexes fell 2% and 1.5%, respectively, on Friday.
The pair would still lose about 1.5% this week, but they had recouped most of the losses made earlier in the week.
The rally in Japanese markets came as Bank of Japan officials tried to play down the central bank's unexpectedly hawkish messages from last week.
Profit hunting in heavyweight technology stocks also helped Japanese indexes, as did good gains from majors including Tokyo Electron. The stock rose 1.7% after stronger-than-expected earnings in the June quarter, as it marked a pick-up in demand from the artificial intelligence sector.
Broader Asian shares advanced, with tech-heavy bourses such as South Korea's and Hong Kong's indexes rising between 1.5% and 2%. The gains in technology have come in tandem with the rebound in US markets.
Australia is up 1.4% and down 1.9% this week, recouping most of its losses this week.
India's index futures pointed to a slightly positive open, after the index and lower on Thursday after striking an unexpectedly hawkish tone, while also slightly lowering its growth outlook for the current quarter.
