In Asian Equity Markets indices mostly higher in Friday morning trade. The Nikkei 225 in Japan added 1.15% in morning trade, while the Topix index rose 1.1% as most sectors gained. Shares of Sony jumped more than 8% after the company announced a $1.83 billion share buyback. In South Korea, the Kospi gained 0.28%. Australia’s ASX 200 also added 0.81%. Mainland Chinese shares, however, were tepid amid ongoing tensions between Beijing and Washington. The Shanghai composite fell around 0.3% in early trade.
In Currency Markets the U.S. dollar hovered near a two-week high against its peers on Friday, supported by strong U.S. economic data and a bounce in Treasury yields. The dollar index versus a basket of six major currencies was at 97.832 after reaching 97.882 on Thursday, its highest since May 3. The Australian dollar was steady at $0.6891. The Aussie was in close reach of a 4-1/2-month trough of $0.6886 plumbed on Thursday after soft domestic employment data heightened expectations for an interest rate cut by the Reserve Bank of Australia.
In Commodities Markets oil prices edged higher on Friday, extending gains into a fourth session as rising tensions in the Middle East stoked fears of potential supply disruptions. Brent crude futures were at $72.82 a barrel, up 20 cents, or 0.3%, from their last close. Brent closed up 1.2% on Thursday when prices hit a high of $73.36 a barrel – the highest since April 26. U.S. West Texas Intermediate (WTI) crude futures were at $63.18 per barrel, up 31 cents, or 0.5%, from their previous settlement. WTI closed up 1.4% in the previous session.
In US Equity Markets indices closed higher on Thursday as upbeat earnings and strong economic data put investors in a buying mood, with technology companies leading the charge. Walmart rose 1.4% after its first-quarter results beat analyst expectations. Cisco Systems stock saw its biggest percentage jump since February 2016, gaining 6.7% after better-than-expected quarterly results. The S&P 500 gained 0.89%, to 2,876.32 and the Nasdaq Composite added 0.97%, to 7,898.05. Pinterest Inc fell more than 12% in extended trading after posting results.
In Bond Markets three encouraging economic data reports on Thursday morning and a rebound in equity prices pushed Treasury yields higher in the North American session. On Thursday, the United States reported that homebuilding increased more than expected in April, weekly jobless claims fell and the Philadelphia Federal Reserve index of business conditions gained in May. The two-year yield, which is a proxy for market predictions of Fed policy, rose by 3 basis points, last at 2.20%, recovering from a dip Wednesday to 15-month lows.