Asian stock markets experienced a rise on Friday, following a record-breaking performance from Wall Street due to a drop in U.S. Treasury yields. Meanwhile, the US dollar is set for its fifth consecutive week of growth. This comes before the release of producer price inflation, consumer sentiment, and housing start data later in the day, which could provide further insight into the direction interest rates may take. Simultaneously, gold maintained its value above $2,000 per ounce, while oil prices experienced a slight dip after a rise on Thursday thanks to OPEC+ members adhering to supply reduction.
In contrast, mainland Chinese markets were shuttered in observance of the Lunar New Year holidays. Hong Kong's Hang Seng index saw a significant increase of 2.48%, closing at 16,339.96, near a one-month high. This surge was primarily driven by property developers, in light of intensified efforts by policy makers to avert a severe liquidity crisis in the property sector.
Japanese markets experienced a 34-year record high, fueled by dovish bets on the Bank of Japan. Kazuo Ueda, the Bank's Governor, stated to parliament that he expects real wages to gradually rise and confirmed that monetary stimulus would be reconsidered once the inflation target of 2% is in sight.
In addition, the Nikkei average rose by 0.86% to 38,487.24, nearing the record set during the 1980s economic bubble. The broader Topix index also saw a rally of 1.27%, closing at 2,624.73. In South Korea, the Kospi average increased 1.34% to 2,648.76 following a 53% year-on-year surge in semiconductor exports.
In the Australian market, shares in core Lithium companies Liontown Resources and Pilbara Minerals soared by 11.9% and 7.2%, respectively in anticipation of future lithium price increases. The benchmark S&P/ASX 200 grew by 0.69% to 7,658.30, while the broader All Ordinaries index also rose by 0.69% to 7,905.60. QBE Insurance reported a dip of 1.7% despite a significant increase in annual profit, and Telstra shares experienced a 1% decline after announcing a review of its enterprise business.
In New Zealand, the benchmark S&P/NZX-50 index increased 0.73% to close at 11,724.48, following signs of improvements in the country's manufacturing sector in January.
U.S. stocks also saw a rise, primarily due to poor retail sales data, leading to decreased Treasury yields and increased speculation of a Federal Reserve interest rate cut in the coming months. Weak industrial production in January and a drop in Americans filing for unemployment benefits last week were also noted. The S&P 500 gained 0.6%, closing at a new record high, while the Dow rallied 0.9% and the tech-focused Nasdaq Composite increased by 0.3%.
