Asian shares were slightly higher on Friday on expectations global central banks will soon embark on an easing cycle in the face of international trade frictions and fears of a world recession.
Those concerns blunted some of the optimism, with liquidity light during Asian trading as China and Hong Kong markets were shut for a public holiday.
Asian Shares
“Central banks are waiting for one man to act; Donald Trump,” said Chris Weston, head of research at Melbourne-based broker Pepperstone, as markets fretted over the U.S. president’s tariff threats on a number of countries including China and Mexico.
“July will be a big month of central bank easing,” he added. “They hold a wait-and-see attitude and will be nimble in accordance with the developments.”
- Japan’s Nikkei ended 0.5% higher, Australia’s benchmark index climbed 0.8% while South Korea’s Kospi added 0.4%.
- In early European trades, the pan-region Euro Stoxx 50 futures were up 0.3%, German DAX futures gained 0.4 while FTSE futures rose 0.2%.
- E-Minis futures for the S&P500 were last up 0.2%, pointing to a positive opening for U.S. markets.
Currency Markets
- In currencies, the dollar was steady on the yen at 108.45 and was off its recent five-month low of 107.80.
- Euro was traded at $1.1267.
Oil Prices
- Oil prices regained a little ground after a rough week but was still vulnerable to worries about global demand and oversupply.
- Brent crude futures bounced 92 cents to $62.59, but were still down nearly 3% for the week so far, while U.S. crude firmed 79 cents at $53.38 a barrel.
Bonds
- Two-year Treasury yields were near their lowest since December 2017 at 1.88%, having fallen 28 basis points in just two weeks.
