Bangkok – On Friday, Asian markets displayed a positive trajectory, showing resilience despite the previous day’s downturn on Wall Street. Notably, Chinese markets experienced a boost following directives to state-run banks and financial entities to intensify efforts in stimulating consumer spending. In parallel, U.S. market futures and oil prices showed upward trends.
Hong Kong’s index rose by 2.5% to settle at 24,038.85, and the Shanghai Composite saw an increase of 1.9%, reaching 3,420.65. This upward movement followed the National Financial Regulatory Administration’s announcement urging financial bodies to promote consumer finance, stimulate credit card usage, and assist borrowers facing challenges. The call for transparency in lending practices was emphasized, alongside a push for economic rejuvenation through consumer activity.
Experts believe China’s economic revival hinges on increased consumer expenditure but advocate for holistic reforms. Suggested measures include enhancing salaries, improving social welfare systems, and bolstering public health and educational resources.
Elsewhere in Asia, Tokyo’s Nikkei 225 showed an increase of 0.9%, up to 37,120.07, while South Korea’s Kospi diminished slightly by 0.2% to 2,569.43. Meanwhile, Australia’s S&P/ASX 200 advanced 0.6% to 7,793.50, with Bangkok’s SET climbing 0.9%. The Taiex in Taiwan rose by 0.3%.
The preceding day witnessed an accelerated sell-off in the U.S., primarily attributed to ongoing trade tensions instigated by President Donald Trump. His trade policies resulted in a 10% or more plunge from the previous record high of the S&P 500, thus entering a “correction” phase marked by a 1.4% decline to close at 5,521.52.
The market volatility is driven by President Trump’s increased tariffs on certain European products, including Champagne, challenging the European Union to reconsider their counter-tariffs on U.S.-made whiskey. Despite positive economic indicators, the pressures of trade policies continued to affect market sentiments.
Significant drops were recorded for the Dow Jones Industrial Average, which fell 1.3% to 40,813.57, along with the Nasdaq composite, which decreased by 2% to 17,303.01. Investors grapple with the predictions of economic impact potentially influenced by tariff policies and other strategic changes.
Declining consumer and business confidence, partly attributed to uncertainties over trade announcements, may lead to reduced spending, as suggested by some U.S. businesses reporting noticeable changes in consumer behavior.
Nevertheless, U.S. economic data offered some reprieve, with reports indicating subdued wholesale inflation and fewer-than-expected unemployment claims signaling a robust job market.
On Wall Street, technology stocks, particularly those involved with artificial intelligence, faced a mixed day. Palantir Technologies and Super Micro Computer faced declines, while Nvidia hovered between gains and losses.
Conversely, sectors previously buoyed by momentum experienced significant fluctuations. Tesla, having seen rare consecutive gains, saw a 3% decline, contributing to a larger yearly downturn.
In positive market movements, Intel’s shares jumped significantly by 14.6% following the announcement of Lip-Bu Tan’s appointment as CEO. Tan, a seasoned semiconductor industry expert, is set to bring fresh leadership amid a challenging environment for Intel.
Oil markets experienced a rise in early trading, with U.S. benchmark crude advancing by 46 cents and Brent crude increasing by 44 cents. Currencies saw the U.S. dollar strengthen against the yen, while the euro experienced a slight dip against the dollar.
