TOKYO — Global markets experienced broad gains on Friday, reflecting a positive outlook for the technology sector and the overall resilience of global economies.
France’s CAC 40 rose by 0.5% to 7,678.10 in early trading, while Germany’s DAX saw a modest increase of nearly 0.1%, reaching 18,927.74. Britain’s FTSE 100 climbed 0.3% to hit 8,404.82. In the U.S., Dow futures were up nearly 0.2%, indicating a potential uptick at 41,510.00, and S&P 500 futures gained 0.4%, reaching 5,632.50.
Japan’s Nikkei 225 surged 0.7% to close at 38,647.75 following predominantly positive economic data.
July’s industrial production data revealed a 2.8% increase compared to June, rebounding from a decline of 4.2%. Although this figure fell short of market expectations, it still indicated growth. Meanwhile, the unemployment rate climbed to 2.7% in July from 2.5% the previous month.
Tokyo’s consumer prices rose more than anticipated, registering a year-on-year increase of 2.6% in August, up from 2.2% in July, driven by surging food and utility costs. This uptick is likely to influence the Bank of Japan’s considerations regarding interest rate adjustments, which are anticipated later this year or early next year.
Australia’s S&P/ASX 200 climbed 0.6% to 8,091.90, while South Korea’s Kospi added 0.5% to 2,674.31. Hong Kong’s Hang Seng index soared 1.1% to 17,989.07, and the Shanghai Composite rose 0.7% to 2,842.21.
In the U.S., strong corporate earnings and encouraging economic growth indicators mark a positive end to a month of favorable reports. Data released in August highlighted robust retail sales, significant employment figures, and high consumer confidence.
Significantly, the U.S. government will release July’s Personal Consumption Expenditures (PCE) report on Friday, which is anticipated to show a slight increase in inflation to 2.6% from June’s 2.5%. A stark contrast to the 7.1% peak recorded in mid-2022.
Market expectations are building for the Federal Reserve to initiate interest rate cuts, with traders anticipating a reduction at the upcoming September meeting. Predictions suggest a cumulative cut of 1% by the end of the year.
In energy markets, benchmark U.S. crude rose 41 cents to $76.32 per barrel, while Brent crude, the international benchmark, increased by 38 cents to $80.32.
In currency markets, the U.S. dollar dipped to 144.99 Japanese yen from 145.02 yen, while the euro gained value, trading at $1.1086, up from $1.1082.
