Investing.com – Most Asian stocks were little changed on Friday, with focus on upcoming U.S. non-farm payrolls data, which is expected to provide more signals about when the Federal Reserve might start cutting interest rates.
The Reserve Bank of India’s interest rate decision was also in focus after local stocks fell sharply this week following the surprise 2024 general election results.
Regional stocks took middling cues from Wall Street overnight as investors hunkered down ahead of an index expected to give final signals on the labor market and interest rates.
Futures for US stock indexes are marking time in Asian trading.
However, appetite for risky assets was somewhat buoyed by interest rate cuts this week, fueling optimism about looser monetary conditions this year.
Indian stocks set for moderately positive opening, expected from RBI
The India index pointed to a moderately positive opening as the index posted a two-day recovery from sharp losses suffered on Tuesday.
The Reserve Bank of India is expected to do so on Friday and has few plans to begin changing policy given that the country’s inflation remains stubborn. But the RBI is also expected to reiterate the good outlook for the Indian economy.
The Nifty was still poised for weekly losses, falling from record highs earlier this week after the BJP-led alliance won a much smaller majority in the 2024 elections, marking a difficult third term for Prime Minister Narendra Modi.
Japanese stocks fall as Bank of Japan prepares to tighten policy
Japanese benchmarks and indices fell about 0.2% each on rising bets that the Bank of Japan will reduce bond purchases.
Gov. Kauo Ueda confirmed plans for such a move earlier this week, while signs of a rebound in Japanese inflation and rising wages also fueled expectations of policy tightening.
But other data released Friday showed the Japanese dollar fell more than expected in April, raising doubts about how much room the Bank of Japan has to tighten policy.
Chinese stocks fall amid trade data
China and indexes fell 0.7% and 0.2% respectively on Friday, with focus on upcoming developments in Asia’s largest economy.
Losses in mainland Chinese stocks sent Hong Kong shares down 0.4%.
China is expected to rebound sharply in May, supported by robust industrial production and improving overseas demand.
But they are expected to remain subdued amid weak local demand.
Chinese stocks have remained largely range-bound in recent weeks as optimism about the country’s economic recovery faded in anticipation of more stimulus from Beijing.
Asian shares rose. Australia’s index rose 0.3% and South Korea’s index gained 0.7% in post-holiday catch-up trading on Thursday.