Asian Markets Trade Mostly Lower

Indonesian stocks rose 20 points, or 0.2%, to a fresh record of 8,660 in Friday morning trade, extending gains for a second session.

Sentiment improved alongside a modest uptick in U.S. futures ahead of the U.S. PCE index release, a key inflation gauge due before the Fed’s final policy meeting next week, where another rate cut is widely expected.

For the week, the IDX Composite is on track for its third consecutive advance, up roughly 1.8% so far.

Optimism was supported by recent OECD projections showing Indonesia’s economy expanding by 5% annually through 2025–2027, backed by fiscal stability, resilient domestic demand, and improving financial conditions.

Gains were led by consumer durables, industrial services, and producer manufacturing, though weakness in healthcare and energy minerals capped broader strength.

Among notable movers were XLSmart Telecom (10.7%), Capital Financial Indonesia (7.0%), Pertamina Geothermal Energy (6.0%), and Bangun Kosambi Sukses (4.3%).

The Shanghai Composite fell 0.1% to around 3,870, while the Shenzhen Component dropped 0.15% to 12,985 on Friday, with mainland stocks set to end the week lower as investors awaited policy signals from high-level meetings this month.

Markets are focused on the annual Central Economic Work Conference and the December Politburo meeting for guidance on Beijing’s policy direction and growth targets for next year.

Economists expect China to maintain its “around 5%” annual growth target for 2026 while keeping fiscal and monetary stimulus options open amid persistent deflation concerns.

Notable losses were reported among heavyweight firms, including Zhongji Innolight (-1.4%), Zhejiang Sanhua (-0.7%), Shenzhen H&T Intelligent (-9.2%), Victory Giant (-9.2%), and Foxconn Industrial (-0.5%).

Hong Kong stocks fell 82 points or 0.3% to 25,855 in Friday’s morning session, reversing gains from the prior day amid broad sector losses.

The benchmark is on track to end the week slightly lower, down about 0.1% so far, after posting gains in the previous period.

Sentiment weakened as traders turned cautious ahead of key November data from China next week, including CPI, PPI, and trade figures, while also awaiting potential policy signals from the upcoming Central Economic Work Conference.

Adding to the pressure were renewed concerns over China’s shadow banking system, after reports that some provinces are turning to costly credit from non-bank lenders.

Limiting declines were an uptick in U.S. futures following a muted Wall Street session overnight, with markets preparing for next week’s Fed interest rate decision.

Among early notable laggards were Shenzhou International (-4.1%), Trip.com (-2.2%), Galaxy Entertainment (-2.1%), and Haidilao International (-1.0%).

The benchmark KOSPI rose 0.67% to around 4,055 on Friday, recovering from the previous session’s losses as sentiment improved following overnight gains on Wall Street.

Large-cap stocks were mixed, with Samsung Electronics (0.38%), LG Energy Solution (3.72%), Hyundai Motor (6%), and Hanwha Ocean (0.82%) leading the gains.

In contrast, SK Hynix (-1.85%), Samsung Biologics (-1.25%), and SK Square (-4.16%) recorded notable losses.

Hyundai Motor shares hit a record high, boosted by investor confidence and the announcement of a strategic partnership with France-based industrial gas supplier Air Liquide SA. Under the deal, the two companies plan to develop key hydrogen hubs in Europe, Korea, and the US. Supporting the KOSPI’s rise, South Korea’s cumulative current account surplus for the first 10 months of 2025 hit a record $89.58 billion, marking the 30th consecutive monthly surplus.

The dollar index held around 99 on Friday but was still poised for a second straight weekly decline, weighed down by bets on Federal Reserve interest rate cuts.

Markets are currently pricing in an 87% chance that the Fed will deliver a 25 bps rate cut next week, with 2–3 more reductions seen for next year.

Prospects that economic adviser Kevin Hassett could replace Fed Chair Powell in May, a move that may signal a shift toward more aggressive policy easing, also pressured the currency.

Data released Thursday showed initial jobless claims fell to a more than three-year low last week, though the figures were affected by the typically volatile Thanksgiving period.

Meanwhile, the Challenger report indicated layoffs rose to 71,321 in November, the highest for that month since 2022.

Looking ahead, investors await delayed September data on the personal consumption expenditures index, the Fed’s preferred inflation gauge, alongside figures on consumer spending and incomes.

TOKYO (dpa-AFX) - Snapping a three-session winning streak, the Japanese market is trading sharply lower on Friday, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling well below the 50,400 level, with weakness across most sectors led by exporters and technology stocks.

The benchmark Nikkei 225 Index is down 650.49 points or 1.27 percent to 50,377.93, after hitting a low of 50,271.36 earlier. Japanese shares ended sharply higher on Thursday.

Market heavyweight SoftBank Group is gaining almost 2 percent, while Uniqlo operator Fast Retailing is down almost 2 percent. Among automakers, Toyota is losing almost 2 percent and Honda is also declining almost 2 percent.

In the tech space, Advantest and Tokyo Electron are declining more than 2 percent each, while Screen Holdings is losing more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial is edging down 0.1 percent, Mizuho Financial is declining more than 1 percent and Mitsubishi UFJ Financial is losing almost 1 percent.

Among the major exporters, Sony, Canon and Mitsubishi Electric are declining almost 2 percent each, while Panasonic is losing more than 1 percent.

Among other major losers, Trend Micro is tumbling more than 6 percent and Renesas Electronics is losing more than 4 percent, while Bridgestone and Fuji Electric are declining almost 4 percent each. Mazda Motor is slipping more than 3 percent, while Suzuki Motor, Dai Nippon Printing, Nintendo, Central Japan Railway, Komatsu and Aeon are down almost 3 percent each.

Conversely, Sharp and Ibiden are gaining almost 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 154 yen-range on Friday.

On Wall Street, stocks showed a lack of direction over the course of the trading day on Thursday after moving higher over the two previous sessions. The major averages spent the day bouncing back and forth across the unchanged line before eventually closed narrowly mixed.

While the Nasdaq rose 51.04 points or 0.2 percent to 23,505.14 and the S&P 500 inched up 7.40 points or 0.1 percent to 6,857.12, the narrower Dow edged down 31.96 points or 0.1 percent to 47,850.94.

Meanwhile, the major European markets all moved to the upside on the day. While the German DAX Index advanced by 0.8 percent, the French CAC 40 Index rose by 0.4 percent and the U.K.'s FTSE 100 Index edged up by 0.2 percent.

Crude oil prices advanced on Thursday as expectations of an end to the Russia-Ukraine war dimmed. West Texas Intermediate crude for January delivery was up $0.70 or 1.19 percent at $59.65 per barrel.

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX