Asian stock markets were trading mostly higher on Friday, shrugging off the negative cues from Wall Street overnight.
Gains in materials and energy stocks, supported by firm metal and crude oil prices, provided a boost to the region.
Additionally, an unexpected decline in US weekly jobless claims offered optimism for a measured approach by the US Federal Reserve in lowering interest rates.
The MSCI Asia-Pacific shares outside Japan climbed 0.33% but were poised to log a weekly loss of nearly 1%, tempering gains made in 2024, where it surged almost 8%.
The Japanese market remained closed for New Year holidays on Friday, with trading set to resume next week.
Australia’s ASX extends gains
The Australian market led the gains, with the benchmark S&P/ASX 200 Index rising 43.60 points or 0.53% to 8,244.80, after peaking at 8,249.90 earlier.
The broader All Ordinaries Index also added 43.30 points or 0.51% to 8,508.30. Gold miners and technology stocks drove broad-based gains, while iron ore miners lagged.
This marks the second consecutive day of strong performance for Australian equities.
Hong Kong’s Hang Seng makes a comeback
Hong Kong’s Hang Seng Index opened 0.19% higher, showing some stability.
The index later in the day gained momentum as Chinese regulators ramped up measures to encourage institutional buying, aiming to restore market confidence.
The Hang Seng Index rose 1% to 19,807.65, partially offsetting the 2.2% decline from the previous session.
Despite the recovery, the benchmark remains down 1.4% for the week.
Tech stocks led the gains, with the Hang Seng Tech Index climbing 1.5%, reflecting improved sentiment in the sector.
China’s stocks were steady in early trading, recovering slightly after Thursday’s plunge, which highlighted concerns over the country’s economic outlook and potential trade tensions with the US as Donald Trump prepares to assume the presidency.
The blue-chip CSI 300 Index edged up 0.16% after experiencing its weakest New Year start since 2016 on Thursday.
Wall Street’s rollercoaster ride on Thursday
Stocks opened higher on Thursday, driven by bargain-hunting after the recent year-end selloff, but struggled to maintain momentum, fluctuating throughout the session.
The major indices turned negative in the early afternoon but managed to pare losses later in the day.
The Dow Jones Industrial Average fell 151.95 points, or 0.4%, to 42,392.27.
The Nasdaq Composite slipped 30.00 points, or 0.2%, to 19,280.79, while the S&P 500 dropped 13.08 points, or 0.2%, to 5,868.55.
Later in the day, a Labor Department report showed an unexpected drop in weekly jobless claims.
Initial jobless claims decreased to 211,000 in the week ending December 28, down 9,000 from the revised 220,000 in the previous week.
Economists had anticipated claims to rise to 222,000. The decline brought claims to their lowest level since late April 2024, reinforcing the Federal Reserve’s cautious approach to lowering interest rates.
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