(Bloomberg) — Japanese shares gained on the yen’s weakness, following a lackluster day on Wall Street that saw muted moves in stocks and government bonds.
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Stocks 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. A cheaper yen typically helps Japan’s export-oriented economy.
The Japanese currency was marginally stronger 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.
The latest economic performance suggests the need for the BOJ to keep considering tightening policy in the coming months. A summary of opinions from the central bank’s December meeting showed mixed views among its board members on the timing of another rate hike partly due to uncertainties over the US economy.
Elsewhere in Asia, shares fluctuated in Hong Kong after a two-day holiday while those in mainland China declined. Equities also rose in Australia, with their South Korean counterparts falling as the country’s political turmoil continued.
“I think investors will continue to tread cautiously around Asian stocks going into 2025,” said Xin-Yao Ng, an investment director at abrdn. “I’m wishing Trump announces his tariff sooner rather than later because besides the direct impact on trades, there’s a lot of indirect impact like on inflation.”
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.
Treasuries were steady after the US 10-year yield dropped one basis point to 4.58% Thursday. Bitcoin’s rally fizzled as investors assessed the remaining impetus from President-elect Donald Trump’s embrace of the cryptocurrency sector.
