TOKYO (AP) โ Asian stocks were mixed on Friday, mirroring the close on Wall Street, although Tokyo's export-related stocks got a boost from a strengthening dollar.
Benchmark indices rose in Tokyo, Sydney and Shanghai, but fell in Seoul and Hong Kong.
The yen has weakened amid speculation that the Bank of Japan could slowly change its loose policy stance as it assesses the impact of Monday's monetary policy. Great earthquake in central Japan.
The US dollar rose to 144.90 Japanese yen from 144.63 yen. The euro fell to $1.0939 from $1.0947.
Japan's benchmark Nikkei 225 added 0.7% to 33,521.67.
Hong Kong's Hang Seng lost 0.1% to 16,622.45, while the Shanghai Composite fell 0.1% to 2,950.61.
Australia's S&P/ASX 200 gained almost 0.1% to 7,497.90. South Korea's Kospi lost 0.1% to 2,583.83.
A weak yen is a boon for Japanese exporters, such as automakers, because it increases the value of their overseas profits. Shares of Toyota Motor Corp. gained 2.3%, while Honda Motor Co. added 2.5%.
"Sentiments are back to wait and see, given that we may have to see a substantial weakening of the US labor market to justify the market price of a rate cut," said Yeap Jun Rong, market analyst at IG.
Wall Street stocks finished mixed, taking the weak start to 2024 into a third day.
The S&P 500 fell 0.3% to 4,688.68 and is on track for its first negative week in the last 10. The Dow Jones Industrial Average gained less than 0.1%, to 37,440.34, and the Nasdaq Composite fell 0.6% to 14,510.30.
Walgreens Boot Alliance sank 5.1% after nearly halving its dividend so it could preserve more cash. That helped overshadow gains for airlines and cruise operators, which recovered some of their steep losses from earlier in the week. Carnival rose 3.1% and United Airlines saw a 2.4% increase.
U.S. stocks have retreated broadly this week after rising to record highs late last year. Critics said the market needed to at least take a breather after its big run, which was fueled by hopes that inflation had cooled enough for the Federal Reserve slash interest rates this year.
Rate cuts give a boost to stock prices and other investments, while easing pressure on the economy and financial system. Treasury yields in the bond market have already declined since the fall on expectations of such cuts, releasing pressure on the stock market.
But Treasury yields rose Thursday after reports showed the labor market could be stronger than expected. The economy is in a delicate phase where investors want it to remain strong, but not too hot.
Of course, a healthy labor market is good for workers and eliminates concerns about an impending recession. But too much force could prompt the Federal Reserve to keep interest rates high because it could keep upward pressure on inflation. And the Federal Reserve has already raised its main interest rate to the highest level since 2001.
A US government report on Thursday showed that fewer American workers applied unemployment benefits last week than expected. Another at the ADP Research Institute said private employers accelerated their hiring last month more than economists expected.
A more complete report on the labor market from the US Department of Labor will arrive on Friday. Economists expect this to show that U.S. hiring slowed to 160,000 jobs last month from 199,000 in November.
Traders are betting that the Federal Reserve will cut interest rates this year by twice as much as the central bank has indicated. Wall Street also thinks the first cut could come in March, and a stronger-than-expected economy makes such predictions less realistic. Critics had already called them too aggressive.
On Wall Street, Peloton Interactive jumped 13.9% after announcing a partnership to bring its workout content to TikTok.
APA fell 7.3% after saying it will buy Callon Petroleum in an all-stock deal valued at about $4.5 billion, including debt. Callon Petroleum gained 2.9%.
In energy trading, benchmark U.S. crude added 35 cents to $72.54 a barrel. Brent crude, the international standard, rose 22 cents to $77.81 a barrel.
___
AP Business Writer Stan Choe contributed.
Yuri Kageyama is in X https://twitter.com/yurikageyama
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
