CANBERA (dpa-AFX) - Asian stock markets are trading mixed on Friday, following the broadly negative cues from Wall Street overnight, amid renewed uncertainty about the outlook for interest rates after Fed Chair Jerome Powell said a further reduction in rates in December is 'not a foregone conclusion. Seemingly positive developments out of US President Donald Trump's highly anticipated meeting with his Chinese counterpart Xi Jinping is aiding market sentiment. Asian markets ended mixed on Thursday.
CME Group's FedWatch Tool is currently indicating a 72.8 percent chance the Fed will lower rates by another quarter point in December, down from 91.1 percent a week ago.
The U.S. has agreed to reduce fentanyl-linked tariffs on China to 10 percent from 20 percent, while China has agreed to resume purchases of U.S. soybeans. China will also suspend the implementation of new export controls on rare earths, and in return, the U.S. will suspend its 50 percent penetration rule on export controls.
The Australian stock market is trading modestly higher on Friday, snapping a three-session losing streak, despite the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,900 level, with strong gains in gold miner stocks partially offset by weakness in technology stocks.
The benchmark S&P/ASX 200 Index is gaining 18.30 points or 0.21 percent to 8,903.80, after touching a high of 8,943.40 earlier. The broader All Ordinaries Index is up 22.40 points or 0.24 percent to 9,201.30. Australian stocks closed notably lower on Thursday.
Among major miners, Rio Tinto is gaining almost 1 percent and Mineral Resources is adding more than 1 percent, while Fortescue is edging down 0.4 percent. BHP Group is flat
Oil stocks are mixed. Origin Energy is declining more than 3 percent and Santos is losing almost 1 percent, while Woodside Energy is gaining almost 1 percent and Beach energy is edging up 0.2 percent.
Among tech stocks, Afterpay-owner Block is losing more than 1 percent and Zip is edging down 0.1 percent, while Appen and Xero are slipping almost 1 percent each. WiseTech Global is edging up 0.1 percent.
Among the big four banks, Commonwealth Bank is adding more than 1 percent and Westpac is gaining almost 1 percent, while ANZ Banking is losing more than 1 percent and National Australia Bank is edging down 0.2 percent.
Gold miners are mostly higher. Northern Star Resources and Evolution Mining are gaining more than 4 percent each, while Genesis Minerals and Newmont are advancing almost 4 percent each. Resolute Mining is edging up 0.2 percent.
In other news, shares in Steadfast are tumbling almost 10 percent after its chief executive Robert Kelly opted to stand aside pending an investigation into allegations made against him by an employee.
Shares in Mayne Pharma Group are plummeting more than 32 percent after it was revealed the federal government could step in to block a troubled potential takeover of the company by US company Cosette Pharmaceuticals Inc. on national interest terms.
In economic news, Australia's final demand Producer Price Index (PPI) jumped 1.0 percent on quarter in in the third quarter of 2025, accelerating from a 0.7 percent rise in the previous quarter and topping market estimates of a 0.8 percent increase. This marked the 21st consecutive quarter of producer price inflation and the fastest pace since the third quarter of 2024.
Australia's private sector credit rose 0.6 percent on month in September 2025, matching the pace of the previous month but exceeding market expectations of a 0.5 percent increase.
In the currency market, the Aussie dollar is trading at $0.655 on Friday.
Extending the gains in the previous two sessions, the Japanese market is sharply higher on Friday, despite the broadly negative cues from Wall Street overnight. The Nikkei 225 is moving well above the 51,900 level to fresh all-time highs, with gains in index heavyweights, exporters and technology stocks partially offset by weakness in automakers and financial stocks.
The benchmark Nikkei 225 Index closed the morning session at 51,948.26, up 622.65 points or 1.21 percent, after touching a fresh all-time high of 52,391.45 earlier. Japanese shares ended slightly higher on Thursday.
Market heavyweight SoftBank Group is gaining more than 3 percent and Uniqlo operator Fast Retailing is adding almost 3 percent. Among automakers, Toyota is losing more than 1 percent and Honda is down almost 1 percent.
In the tech space, Advantest is gaining almost 3 percent, while Tokyo Electron and Screen Holdings are advancing more than 1 percent each.
In the banking sector, Sumitomo Mitsui Financial, Mitsubishi UFJ Financial and Mizuho Financial are edging down 0.1 to 0.4 percent each.
Among the major exporters, Sony and Mitsubishi Electric are advancing more than 3 percent each, while Canon is edging up 0.1 percent. Panasonic is tumbling more than 6 percent.
Among other major gainers, Socionext is skyrocketing almost 17 percent, Konami Group is soaring more than 14 percent, Renesas Electronics is jumping more than 10 percent, Hitachi advancing almost 10 percent, Japan Tobacco is surging almost 9 percent and Osaka Gas is rising more than 7 percent, while Kansai Electric Power and Nomura Research Institute are gaining more than 5 percent each. NEXON and East Japan Railway are adding almost 5 percent each, while Tokyo Gas, Ryohin Keikaku and Toho are up more than 4 percent each.
Conversely, Oriental Land is tumbling more than 8 percent, Yamato Holdings is sliding almost 8 percent, Nissan Motor is declining more than 4 percent and Nidec is losing almost 4 percent, while Kyocera and Keyence are down almost 3 percent each.
In economic news, retail sales in Japan unexpectedly rose 0.5 percent year-on-year in September 2025, rebounding from a downwardly revised 0.9 percent decline in the August, but falling short of market expectations for a 0.7 percent increase. On a monthly basis, retail sales rose 0.3 percent in September, recovering from a downwardly revised 0.9 percent drop in August.
Japan's unemployment rate held at 2.6 percent in September 2025, unchanged from the previous month but slightly above market expectations of 2.5 percent. It remained the highest reading since July 2024, with the number of unemployed increasing by 20,000 to a 14-month high of 1.81 million. On a non-seasonally adjusted basis, the labor force participation rate climbed to 64.2 percent, marking the highest level in three months and up from 63.5 percent a year earlier.
Meanwhile, core consumer prices in Tokyo's Ku-area rose 2.8 percent year-on-year in October 2025, picking up from a 2.5 percent gain in the previous two months and surpassing market forecasts of 2.6 percent.
Japan's industrial production rose 2.2 percent month-over-month in September 2025, beating market expectations of 1.5 percent and rebounding from a 1.5 percent drop in the previous month. It marked the first increase since June and the fastest pace since February. On an annual basis, industrial production expanded 3.4 percent, reversing a 1.6 percent decline in August.
In the currency market, the U.S. dollar is trading in the higher 153 yen-range on Friday.
Elsewhere in Asia, China, Hong Kong, Singapore and Indonesia are lower by between 0.2 and 0.7 percent each, while New Zealand, South Korea and are higher by between 0.5 and 0.6 percent each. Malaysia is relatively flat.
On Wall Street, stocks moved mostly lower over the course of the trading day on Thursday, with the Dow joining the Nasdaq and the S&P 500 in negative territory after seeing some strength early in the session.
After ending Wednesday's trading at a record closing high, the tech-heavy Nasdaq showed a particularly steep drop, plunging 377.33 points or 1.6 percent to 23,581.14. The S&P 500 also slumped 68.25 points or 1.0 percent to 6,822.34, while the narrower Dow posted a more modest loss, slipping 109.88 points or 0.2 percent to 47,522.12.
Meanwhile, the major European markets showed a lack of direction over the course of the session. While the French CAC 40 Index slid by 0.5 percent, the U.K.'s FTSE 100 Index and the German DAX Index both ended the day roughly flat.
Crude oil prices moved back to the downside early in the session on Thursday but have regained ground over the course of the trading day. West Texas Intermediate crude for December delivery was down just $0.02 or less than a tenth of a percent at $60.46 per barrel.
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