Asian market sees mixed performance as volatile yen fluctuates post Wall Street’s rise on inflation data.

Asian stocks had a mixed performance on Friday, with the Japanese yen slightly decreasing its gains following a U.S. update on inflation that suggested a possible interest rate relief by September, boosting Wall Street optimism. U.S. futures and oil prices experienced an increase. The U.S. dollar faced a reduction of 2.1% against the yen, trading as low as 157.43 yen, before rebounding to 159.19 yen on Friday.

In the stock market, Tokyo’s Nikkei 225 index declined by 2.5%, while Hong Kong’s Hang Seng index rose by 2.4% and China’s Shanghai Composite index increased by less than 0.1% after positive data showing an 8.6% growth in China’s exports in June. Australia’s S&P/ASX 200 went up by 0.9%, but South Korea’s Kospi fell by 1.4%.

Elsewhere, Bangkok’s SET index slightly rose by 0.2%, while Taiwan’s Taiex dropped by 2%, influenced by Taiwan Semiconductor’s 1.9% decline despite reporting a 33% revenue increase in June compared to last year.

On Wall Street, the S&P 500 index saw gains in four out of five stocks, although declines in influential companies like Nvidia and Microsoft, combined with concerns over artificial intelligence technology stock valuations, led to a 0.9% drop from its previous all-time high. The Nasdaq composite also decreased by 2% from its record, breaking a seven-day winning streak.

In the bond market, yields tumbled on expectations of the Federal Reserve lowering its main interest rate soon, indicating optimism from traders. Wall Street responded positively to a U.S. inflation report showing softer price increases in June for various consumer goods, prompting a drop in Treasury yields. The S&P 500 closed 0.9% lower, the Dow Jones Industrial Average rose by 0.1%, and the Nasdaq composite dropped by 2%.

U.S. benchmark crude oil prices rose to $83.19 per barrel, and Brent crude increased to $85.83 per barrel. The euro also saw a slight rise to $1.0866.