Asian shares advanced on Friday, tracking record highs in U.S. markets as investors awaited key U.S. jobs data that could pave the way for interest rate cuts.
Japan’s Nikkei 225 climbed 0.9% after reports showed labor cash earnings rising 4.1% year-on-year in July and household spending up for the third consecutive month. In China, the Hang Seng index gained 0.5% while the Shanghai Composite added 0.4%. South Korea’s Kospi edged slightly higher, and Australia’s S&P/ASX 200 rose 0.3%. India’s Sensex gained 0.2% and Taiwan’s Taiex jumped more than 1%.
The momentum followed Wall Street’s latest rally, where the S&P 500, Dow Jones, and Nasdaq all posted strong gains. Weaker-than-expected U.S. job market data eased pressure on Treasury yields, fueling expectations that the Federal Reserve may cut rates at its upcoming meeting. Investors see a cooling job market as increasing the likelihood of monetary easing, which typically boosts economic activity.
Oil prices edged lower, with U.S. crude at $63.35 per barrel and Brent crude at $66.88. Currency markets were mixed, with the dollar slightly weaker against the yen while the euro strengthened against the dollar.