Shares in Tokyo rose after the yen dropped to a five-month low of 158 per dollar in the previous session, following Bank of Japan Governor Kazuo Ueda’s comments Wednesday that avoided giving a clear signal on interest rates next month.
The Japanese currency was moderately stronger early Friday, after data showed inflation in Tokyo accelerated for a second month in December. Meanwhile, industrial output fell less than expected while retail sales came in higher than estimates.
Shares in Hong Kong will resume trading after a two-day Christmas break.
The S&P 500 ended Thursday flat, while the tech-heavy Nasdaq 100 fell 0.1% in quiet post-holiday session as mixed jobless claims data did little to alter bets on the Federal Reserve outlook. Major European markets were closed Thursday. An index of the dollar was flat as it heads for its best year since 2015.
US megacaps struggled during the session, though Apple Inc. outperformed after a bullish note from Wedbush. GameStop Corp. rallied after an X post from Keith Gill, the online persona known as Roaring Kitty.Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it’s taking longer for out-of-work people to find a job. Initial claims, meanwhile, ticked down to 219,000 in the week ended Dec. 21.“Eco data is a non-event until we move into the new year,” said Kenny Polcari at SlateStone Wealth. “Christmas is behind us, but the New Year is ahead of us. Volumes will remain muted.”
Treasuries were steady after the US 10-year yield dropped one basis point to 4.58% Thursday. Bitcoin sank as traders reduced their risk exposure after a record-breaking run. Australia and New Zealand bond yields edged lower in early hours.
To Jonathan Krinsky at BTIG, the market can continue to make upside progress into year-end, hitting a fresh all-time high for the S&P 500 above 6,100. Looking ahead to January, however, he thinks think volatility will re-emerge.
“If the S&P 500 does make new highs, there are going to be massive divergences in breadth and momentum, which is another red flag as we get into January,” he noted.
South Korea Concerns
In Asia, South Korea’s business confidence deteriorated the most since the global outbreak of Covid-19, reflecting mounting concerns about an economy grappling with political turmoil and facing Donald Trump’s tariff threats.
Meanwhile, Alibaba Group Holding Ltd. agreed to merge its South Korean operations with E-Mart Inc.’s e-commerce platform to better compete in the country’s fast-paced online retail sector.
Japan Airlines Co. said it has resumed ticket sales after a cyberattack on Thursday morning.
Data set for release in Asia includes industrial profits for China and trade data for Thailand. Also in South Korea, a preliminary court hearing will be held on the impeachment of President Yoon.
In commodities, gold was little changed after rising Thursday to a one-week high. West Texas Intermediate crude was steady after falling in the prior session to trade under $70 per barrel.
