HONG KONG -- Global markets mostly advanced on Friday after Wall Street recovered most of the previous week's losses and Japan reported a slowdown in inflation, which may keep its ultra-low interest rates stable.
Dow Jones Industrial Average futures rose 0.1% and the S&The P 500 rose 0.2%.
France's CAC 40 added 0.5% to 7,434.81 in early trading. Germany's DAX rose 0.4% to 16,635.19. Britain's FTSE 100 rose 0.7% to 7,510.86.
Retail sales in the UK experienced the sharpest fall since the COVID-19 lockdown three years ago, with the volume of goods purchased in the country falling 3.2% in December, adding to a new risk of recession.
In the Asian market, Tokyo's Nikkei 225 index rose 1.4% to 35,963.27.
Japan's inflation slowed for a second straight month, raising the possibility that the Bank of Japan will leave its ultra-low interest rates unchanged at its meeting next week. The country's annual headline inflation rate has remained above the BOJ's 2% target since April 2022, with a gradual decline seen from its peak of 4.3% last year to the 2.6% rate in December which was reported on Friday.
Hong Kong stocks were on track for their third straight week of losses as investors remain concerned about the bleak economic outlook. Hong Kong's Hang Seng lost 0.5% to 15,368.69 and the Shanghai Composite Index fell almost 0.5% to 2,832.28.
In South Korea, the Kospi added 1.3% to 2,472.74. S from Australia&P/ASX 200 advanced 1% to 7,421.20. In Bangkok, the SET rose 0.2%. Taiwan's Taiex gained 2.6%, and Taiwan Semiconductor Manufacturing Co. added 6.5%.
On Thursday, the S&The P 500 rose 0.9% to 4,780.94 after consecutive declines that began the holiday-shortened week. The Dow Jones Industrial Average gained 0.5% to 37,468.61 and the Nasdaq composite jumped 1.3% to 15,055.65.
The market remained broadly more stable as Treasury yields in the bond market slowed their jump from earlier in the week. Yields had been rising as traders pushed back their forecasts for when the Federal Reserve will begin cutting interest rates. Higher yields, in turn, lower stock prices and increase pressure on the economy.
The Federal Reserve has indicated it will likely cut rates several times in 2024 because inflation has been cooling since its peak two summers ago, meaning it may not need such tight control over the economy and financial system.
The 10-year Treasury yield rose again on Friday, to 4.15% from 4.11% late Wednesday.
Treasury yields rose and fell in the minutes after a Thursday morning report showed the number of U.S. workers filing for unemployment benefits fell last week to its lowest level since two Septembers ago. That's good news for workers and for the broader economy, which has so far fueled predictions of a recession.
Other reports on the economy were mixed on Thursday. One showed that manufacturing in the mid-Atlantic region is contracting more than economists expected. Another said homebuilders broke ground on more projects last month than economists expected, even if it was weaker than the November level.
In energy trading, benchmark U.S. crude added 27 cents to $74.22 a barrel. Brent crude, the international standard, gained 21 cents to $79.31 a barrel.
The US dollar slowly rose to 148.31 Japanese yen from 148.15 yen. The euro was worth $1.0871, down from $1.0874.
