Asian stock markets began Friday’s session with modest gains, as a rally in global equities gained fresh momentum from strong US economic data that helped to ease concerns about a potential slowdown in the American economy.
While most regional indices advanced, Indian benchmarks like the Sensex opened on a weaker note.
The MSCI Asia Pacific Index rose 0.2% at the open, reflecting a generally positive mood across the region.
US equity-index futures also gained after both the S&P 500 and the Nasdaq 100 had set new closing highs on Thursday.
The technology sector was a particular bright spot, with a bullish outlook from chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) bolstering confidence in the continued strength of artificial-intelligence spending.
Adding to the positive sentiment, Netflix Inc. also reported strong earnings and raised its future forecast.
This cross-asset movement signaled a return of bullish risk appetite, a notable shift from just a day prior when speculation that President Donald Trump might fire Federal Reserve Chairman Jerome Powell had sent volatility spiking.
The gains in equities reflected not only strong economic data but also a growing confidence that US companies will deliver robust second-quarter earnings, helping to calm some of the uncertainty caused by President Trump’s ongoing tariff war.
“As long as the economy continues to expand and unemployment remains low, then people will continue to spend and the flywheel can keep generating higher profits, which is the engine for higher stock prices,” commented Chris Zaccarelli at Northlight Asset Management.
Japan’s inflation cools, Fed’s Powell under pressure
In Japan, the yen steadied as the country’s key price measure cooled a bit more than expected, though it remained well above the Bank of Japan’s target.
Japan’s core inflation (which strips out fresh food costs) eased to 3.3% in June, down from a 29-month high of 3.7% in May, as rice inflation showed signs of easing.
This figure was in line with economists’ expectations. The “core-core” inflation rate, which excludes both fresh food and energy and is closely watched by the BOJ, climbed to 3.4% from 3.3% in the month before.
Meanwhile, the US dollar dipped as Federal Reserve Governor Christopher Waller stated that policymakers should cut interest rates this month to support a labor market that is showing signs of weakness.
Following his comments, US Treasuries rose, with yields on the 10-year note falling for a third consecutive day.
Despite this, Fed Chair Jerome Powell remains under intense political pressure. Representative Anna Paulina Luna has said she is “criminally referring” the Fed chair to the Justice Department to investigate “perjury,” though such referrals by lawmakers are not legally binding.
Powell also countered criticisms from a top White House official over a $2.5 billion renovation project in a letter, stating, “we take seriously the responsibility to be good stewards of public resources.”
Crypto legislation faces hurdles in Congress
The future of three key crypto bills in the US Congress remains uncertain after two days of infighting among House Republicans over the contents of the legislation and the process for moving it forward.
Late Wednesday night, the House GOP finally approved the rules of debate for the crypto bills and an adjacent Pentagon appropriations package, in what was the longest-ever vote of its kind in the House.
The three bills in question include the GENIUS Act (which passed the Senate in June), the CLARITY Act, and a bill that would bar the Federal Reserve from establishing a central bank digital currency.
This legislative uncertainty comes as Bitcoin has been trading at all-time highs in recent days, fueled by optimism over potential regulatory clarity and significant institutional buying of Bitcoin exchange-traded funds (ETFs).
Indian markets open lower amid sectoral drag
In contrast to the broader regional trend, Indian benchmark stock market indices opened lower on Friday.
The S&P BSE Sensex lost 199 points to 82,060.24, while the NSE Nifty50 was down by 40.50 points to 25,070.95, as of 9:28 am. The downturn was primarily driven by a drag from stocks in the private bank and heavyweight financials sectors.
A notable feature of economic activity in India in recent years has been the resilience of luxury consumption, even as mass consumption has shown weakness.
Early indications from Q1 results, such as good results from the hotels industry, suggest a continuation of this trend.
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