Asian shares were mostly higher on Friday as investors awaited a report on the U.S. jobs market, with major markets like Tokyo and Shanghai closed for holidays. Oil prices and U.S. futures were on the rise, while the Japanese yen strengthened slightly against the U.S. dollar due to central bank intervention.
The Japanese government reportedly spent an estimated 8 trillion yen (about $50 billion) this week to prevent the yen from slipping further against the dollar. This move comes as the Bank of Japan recently abandoned its negative interest rate policy and raised its benchmark rate to zero to 0.1%.
Marcel Thieliant of Capital Economics suggested that the Bank of Japan might raise rates further, even if its 2% target isn’t met. The Ministry of Finance has responded with forceful foreign exchange interventions to prevent the yen from sliding, despite the weaker economic case for doing so.
In other parts of Asia, Hong Kong’s Hang Seng surged 1.7% on news of Chinese leaders taking steps to boost the economy, driving technology shares higher. E-commerce giant Alibaba saw a 3.9% increase, while Australia’s S&P/ASX 200 gained 0.6%.
On Wall Street, the S&P 500 and Dow Jones Industrial Average rose, with the Nasdaq composite jumping 1.5%. Investors are eagerly awaiting the U.S. government’s report on job additions, with expectations of a hiring slowdown. Additionally, concerns about inflation persist, with Apple climbing 2.2% ahead of its profit report.
In energy trading, U.S. benchmark crude oil and Brent crude both saw gains. Overall, the market remains optimistic despite economic uncertainties and inflation concerns.