Investing.com– Most Asian stocks kept to a tight range on Friday amid increased caution over U.S. interest rate cuts, while investors digested mixed economic readings from Japan and China.
Regional markets took weak cues from Wall Street, which fell on Thursday after Federal Reserve Chair Jerome Powell warned that strength in the U.S. economy gave the central bank more time to consider interest rate cuts.
His comments, coupled with strong inflation data released this week, saw traders sharply pare bets on a December rate cut. U.S. stock index futures also fell in Asian trade, while the dollar and Treasury yields rose.
Chinese stocks muted amid mixed economic data
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both fell slightly, while Hong Kong’s Hang Seng index traded marginally higher after a mixed batch of economic readings from the mainland.
Chinese industrial production rose less than expected in October, as did fixed asset investment. House prices also shrank during the month, signaling continued pressure on the property market.
But retail sales grew much more than expected, buoyed largely by the Golden Week holiday. The reading pushed up some hopes that retail spending will improve further, especially as Beijing mobilizes more stimulus.
Chinese stock indexes were set to lose around 2% this week, while the Hang Seng was down over 6%. Losses came as China’s latest round of fiscal measures largely underwhelmed investors hoping for more targeted measures.
Fears of a renewed trade war with the U.S. also weighed after Donald Trump won the 2024 presidential election.
