Asian Markets Climb Amid Strong U.S. Data and Earnings
Asian markets rose on Friday, following strong U.S. economic data and corporate earnings. The S&P 500 and Nasdaq reached record highs, while Japan's Nikkei fell slightly, impacted by political uncertainties. The yen weakened, linked to Japan's upcoming election and potential trade negotiations. Treasury yields and oil prices saw minor changes.
Asian shares mirrored Wall Street's upward trend on Friday, buoyed by robust U.S. economic data and strong corporate earnings, despite concerns over tariffs. The yen continued its downward trajectory, anticipating Japan's upcoming upper house election set to influence Japan's economic landscape.
The S&P 500 and Nasdaq attained record highs as U.S. economic indicators like retail sales and jobless claims surpassed expectations, hinting at mild economic improvement. This provides the Federal Reserve with leeway to assess the inflationary effects of increased tariffs. Although Netflix's second-quarter earnings surpassed projections due to a softer dollar, its shares dipped 1.8% post-trading.
While MSCI's Asia-Pacific index advanced, Japan's Nikkei dipped amidst concerns over Prime Minister Shigeru Ishiba's coalition potentially losing its majority in the Sunday election. Concurrently, Japan's core inflation slowed in June due to temporary utility bill reductions, remaining above the central bank's target, amidst political and economic uncertainties, notably high rice prices impacting Ishiba's popularity.
(With inputs from agencies.)
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