Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly higher on Friday, following the broadly positive cues from Wall Street overnight, as traders scaled back bets on an imminent interest rate hike by the US Fed this month following dovish comments from Fed Governor Christopher Waller, who said he would favor keeping interest rates unchanged if inflation continues to ease. They also assessed renewed tensions in the Middle East after the recent flare-up. Asian markets ended mixed on Thursday.

CME Group's FedWatch Tool currently suggests there is still a 50.4 percent chance the Fed will raise rates by a quarter point, but that is down from 63.2 percent on Wednesday.

Traders were also looking ahead to the closely watched US monthly employment report for August due later in the day, which could have a significant impact on the outlook for interest rates.

The latest flare-up in the Middle East came after a US attack on Iran triggered retaliatory strikes on American bases across the region.

Although US President Donald Trump indicated that renewed strikes on Tehran would not last too long, tensions remain high around the Strait of Hormuz.

The Australian stock market is trading modestly lower on Friday, reversing some of the gains in the previous session, despite the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is staying below the 9,050 level, with gains in gold miners financial and technology stocks.

The benchmark S&P/ASX 200 Index is losing 15.90 points or 0.18 percent to 9,004.20, after touching a high of 9,070.20 earlier. The broader All Ordinaries Index is 8.20 points or 0.09 percent to 9,190.10. Australian stocks closed notably higher on Thursday.

Among major miners, Rio Tinto is down more than 1 percent, BHP Group is losing more than 2 percent and Mineral Resources is declining almost 3 percent, while Fortescue is gaining almost 2 percent.

Oil stocks are mostly lower. Woodside Energy, Santos and Beach energy is losing almost 1 percent each, while Origin Energy is down more than 1 percent.

Among tech stocks, Afterpay and Square-owner Block and WiseTech Global are gaining more than 1 percent each, while Zip is advancing more than 4 percent and Appen is adding almost 3 percent. Xero is losing more than 2 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking, Westpac and National Australia Bank are edging up 0.1 to 0.4 percent each.

Gold miners are mostly higher. Genesis Minerals and Evolution Mining are gaining more than 1 percent each, while Newmont is adding more than 2 percent and Resolute Mining is advancing almost 2 percent. Northern Star Resources is flat.

In the currency market, the Aussie dollar is trading at $0.721 on Friday.

The Japanese market is trading significantly higher on Friday, snapping a four-session losing streak, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving above the 64,750 level, with gains in index heavyweights and technology stocks partially offset by weakness in automakers and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 64,769.74, up 555.26 points or 0.86 percent, after touching a high of 64,846.31 earlier. Japanese shares ended modestly lower on Thursday.

Market heavyweight SoftBank Group is surging more than 7 percent and Uniqlo operator Fast Retailing is gaining more than 2 percent. Among automakers, Toyota is down almost 1 percent and Honda is also losing almost 1 percent.

In the tech space, Advantest is edging up 0.3 percent, Screen Holdings is adding more than 1 percent and Tokyo Electron is gaining more than 1 percent.

In the banking sector, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial are all losing more than 1 percent each.

Among the major exporters, Panasonic is edging up 0.1 percent. Canon is losing almost 1 percent, while Mitsubishi Electric and Sony are edging down 0.2 percent each.

Among other major gainers, SHIFT is jumping more than 5 percent, while Kioxia Holdings and Furukawa Electric are surging almost 5 percent each. Taiyo Yuden is advancing almost 4 percent and Trend Micro is gaining more than 3 percent, while Aeon, Fujitsu, Sumco, Japan Exchange and Rakuten are all adding almost 3 percent each.

Conversely, Mitsui & Co. is declining more than 4 percent, Sumitomo Chemical is losing almost 4 percent and Takeda Pharmaceutical is slipping more than 3 percent, while Mitsui Chemicals, Mitsubishi, Marubeni, Kikkoman, Mitsui O.S.K. Lines, Nissui, Mitsubishi Materials, Orix and Kawasaki Kisen Kaisha are down almost 3 percent each.

In economic news, Japan's household spending declined 3.6 percent on year in July 2026, higher than the 3.3 percent drop in the prior month and underperforming market expectations for a 1.6 percent fall. It marked the eighth straight month of contraction and the sharpest pace since January 2024.

On a seasonally adjusted monthly basis, household expenditure rose 0.5 percent, reversing a 6.4 percent decline in June and missing forecasts for a 2.6 percent increase.

In the currency market, the U.S. dollar is trading in the lower 156 yen-range on Friday.

Elsewhere in Asia, Hong Kong is up 2.2 percent, while New Zealand, China, Singapore, South Korea and Taiwan are higher by between 0.6 and 1.0 percent each. Indonesia and Malaysia are down 0.4 percent each. On Wall Street, stocks saw further upside over the course of the trading day on Thursday after advancing early in the session. The major averages all moved sharply higher on the day, extending the rebound seen in the previous session.

The major averages gave back some ground going into the end of the day but remained firmly positive. The Dow jumped 624.16 points or 1.2 percent to 53,686.11, the Nasdaq surged 366.23 points or 1.4 percent to 26,584.06 and the S&P 500 shot up 81.11 points or 1.1 percent to 7,747.71.

The major European markets all also moved to the upside on the day. While the French CAC 40 Index inched up by 0.1 percent, the German DAX Index climbed by 0.6 percent and the U.K.'s FTSE 100 Index advanced by 0.7 percent.

Crude oil prices ticked higher on Thursday on hopes that the new wave of U.S. strikes on Iran will be limited. West Texas Intermediate crude for October delivery was up $0.24 or 0.26 percent at $91.26 per barrel.