Investing.com - APAC shares started Friday’s session in the green with US stocks rising overnight as lower jobless claims data eased recession fears.
By 10:35 am AEST (12:35 am GMT), the S&P/ASX 200, KOSPI 200, and Nikkei 225 gained 0.6%, 1.5% and 1.7%, respectively.
In the US, the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite all saw gains. The better-than-expected jobless claims report helped ease fears about the labor market weakening.
US stock futures and Treasury yields rose immediately after data showed initial jobless claims were 233,000 for the week ending August 3, down from the prior week's 250,000. This helped alleviate some concerns about a US labor-market slowdown following last week’s weaker-than-expected jobs report.
The 10-year Treasury yield climbed back near 4%, closing at 3.997%.
Thursday’s session was a relief after a highly volatile week. Last week’s weak jobs data sparked a sharp market selloff, intensified by hedge funds unwinding leveraged bets.
Thursday’s gains were broad-based, with every S&P 500 sector closing in the green. The index was down just 0.5% for the week, recovering most of its losses.
The Japanese yen fell against the dollar, relieving big institutional investors who had been forced to unwind their bets against the currency during a recent rally.
The CBOE Volatility Index, a measure of expected S&P 500 volatility and known as Wall Street’s fear gauge, fell to around 24 after spiking earlier to levels not seen since the COVID-related market crash in 2020.
Among earnings, Eli Lilly and Company (NYSE:LLY) stock rallied 9.5% after raising its annual revenue guidance by $3 billion.
Warner Bros Discovery Inc (NASDAQ:WBD) stock tumbled 9% after reporting nearly a $10 billion loss due to write-downs on its television stations.
In commodity markets, Brent crude oil was up 1.1% to $79.16 a barrel, while gold was down 0.1% at $2,425.70.
Chinese shares closed lower, dragged by shipping and auto stocks. Chongqing Changan Automobile dropped 2.95%, and Ningbo Deye Technology fell 2.2%. China Merchants Energy Shipping and Cosco Shipping declined 3.6% and 3.5%, respectively. The property sector gained amid positive sentiment after Shenzhen announced a program to buy unsold housing inventory for public housing. China Vanke closed 1.9% higher. The Shanghai Composite Index ended flat at 2,869.90, the Shenzhen Composite Index dropped 0.1% to 1564.26, and the ChiNext Price Index decreased 0.5%.
Hong Kong shares ended slightly higher, with the Hang Seng Index rising 0.1% to 16,891.83. Market sentiment remained cautious, with investors waiting for US data, including weekly jobless claims. Techtronic Industries added 3.1%, and Sunny Optical Technology rose 3.1%. Trip.com fell 3.5%, and Meituan dropped 1.3%. The Hang Seng Tech Index slid 0.5% to 3,366.68.
Japan's Nikkei Stock Average fell 0.7% to close at 34,831.15 after oscillating between gains and losses. US stock market movements following a weak Treasury auction highlighted global market fragility. Shiseido plunged 15.5% after posting a 1H operating loss, while Kose Corp. dropped 11.3%. Tech companies Fujitsu and Ibiden also fell 5.3% and 6.0%, respectively. The 10-year JGB yield was down 4 basis points at 0.835%.
India's Sensex closed 0.7% lower at 78,886.22, weighed down by manufacturing and utility stocks. Investors remained cautious after a global selloff earlier this week. The RBI kept rates unchanged and is likely in a wait-and-see mode pending more cues from the US Fed. Asian Paints fell 3.2%, Infosys lost 2.8%, and Power Grid Corp. of India shed 2.7%. Tata Motors gained 1.6%, HDFC Bank rose 1.1%, and Bharti Airtel added 0.7%.
UK stocks slipped Thursday, with the FTSE 100 Index dropping 0.3% to 8,144.97. Spirax Group PLC fell 7.4%, Savills PLC dropped 5.0%, and Helios Towers PLC decreased 4.4%. Beazley PLC surged 11%, Deliveroo PLC also gained 11%, and Hikma Pharmaceuticals PLC rose 8.3%.
Elsewhere in Europe, markets closed mixed. The STOXX Europe 600 Index was up 0.1% to 496.37, Germany’s DAX gained 0.4% to 17,680.40, while France’s CAC 40 lost 0.3% to 7,247.45.