(Bloomberg) — Asian shares rose, helped by signs of a stabilization in the Chinese economy and a pullback in the dollar.
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Shares in Hong Kong and Australia rose after data showed China posted the highest retail sales growth in eight months. Japanese benchmarks rose about 0.8%, supported by yen weakness. American contracts have disappeared.
A gauge for the dollar ended a five-day gain, helped by comments from Fed Chairman Jerome Powell that the central bank will be in no hurry to cut rates. The US two-year yield was little changed.
“We think a rate cut is on the horizon in December and we think there will be at least two cuts next year,” Salman Niaz, head of global fixed income for APAC ex-Japan at Goldman Sachs Asset Management, said on Bloomberg Television .
“The strength of the dollar has clearly taken some of the returns away from local currency emerging market bonds, but we think the more attractive opportunity at the moment is in the hard currency aspect of emerging markets,” Niaz said, referring dollar-denominated bonds. debt.
Friday’s action provides a welcome respite for emerging market assets after suffering most of the week from developments surrounding newly-elected US President Donald Trump’s cabinet choices and shifting interest rate forecasts. A gauge of emerging market stocks remains on track for its worst week since June 2022, while a separate index of emerging market currencies is set to all but erase its gains for the year.
South Korean shares fell on Friday, under pressure from battery makers after news that Donald Trump could eliminate a tax credit for the purchase of electric vehicles. The won is in the spotlight after the country was added to the US Treasury Department’s “monitoring list” for currency practices.
In terms of key revenues, Alibaba Group Holding Ltd. reports. later Friday after JD.com Inc, another Chinese consumption indicator, posted moderate sales growth.
Elsewhere, the dataset for publication in the region includes gross domestic product for Malaysia and Hong Kong. In India the markets are closed.
On the commodity side, oil was heading for a weekly decline, weighed down by the impact of a stronger dollar and worries that the global market will turn into a glut next year. Gold remained near a two-month low.
