Investing.com — Most Asian stocks rose on Friday, supported by technology stocks, as positive earnings from Apple Inc supported sentiment, although regional market holidays and anticipation of key U.S. data kept gains in check.
Regional trading volumes were somewhat dampened by holidays in Japan and China.
Asian markets took a positive lead from Wall Street, which rose on Thursday as technology stocks recovered from steep losses this week. U.S. stock index futures also rose in Asian trading.
But overall gains were limited, with Wall Street still heading for weekly losses as fears of prolonged high US interest rates largely offset optimism. The focus now has been on upcoming non-farm payrolls data, due later in the day, for more clues about rates.
Asian tech trails US gains and better than feared Apple profits
Asia’s tech-hit stock markets were among the day’s better performers, with Hong Kong’s index up 1.4%. The index was also the best performer in Asia this week as more stimulus in China, especially in the real estate sector, gave real estate stocks a huge boost.
South Korea added 0.1%, while gains in technology pushed the Australian index up 0.6%.
An after-hours rebound at Apple Inc (NASDAQ:) spilled over to the company’s Asian suppliers, especially after the iPhone maker posted better-than-feared profits and forecast some sales growth for the current quarter.
Apple suppliers in Taiwan, mainly TSMC (TW:) (NYSE:) and Hon Hai Precision Industry (Foxconn (TW:)) rose 1.5% and 2.3% respectively.
Hong Kong’s AAC Technologies (OTC:) Holdings Inc (HK:) added more than 3%, while in South Korea Samsung Electronics Co. Ltd (KS:), SK Hynix Inc (KS:) and LG Innotek Co Ltd (KS:) rose between 0.5% and 5.2%.
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Broader Asian markets were largely subdued as trading volumes remained subdued amid regional holidays and caution on US interest rates.
Futures for the Indian index pointed to a muted opening after the index briefly hit record highs earlier this week. But the Nifty otherwise recorded mild intraday moves amid caution over India’s 2024 general elections.
Nonfarm payrolls were awaiting more rate guidance
Markets were also largely cautious when key figures were released later on Friday.
Nonfarm payrolls have consistently exceeded market expectations over the past five months, despite continued strength in the U.S. labor market.
The strong labor market gives the Federal Reserve more room to keep interest rates high for longer. The central bank had warned about this at a meeting earlier this week, but also said future rate hikes were unlikely despite recent persistent inflation.
