Investing.com– Asian shares rose on Friday amid chilling fears of an imminent U.S. recession, while mildly positive inflation data from China also helped boost sentiment.
But regional markets went into weekly losses after marking steep declines earlier in the week.
Asian stocks got a positive lead from Wall Street as better-than-expected jobless claims data fueled hopes that the US labor market is not in as bad a crunch as initially feared.
US stock index futures edged higher in Asian trade.
Chinese markets lag, but CPI data remains positive
China’s and indices each rose 0.3%, relatively lower than most of their Asian peers. Both indexes fell about 0.8% this week, their third straight weekly losses.
But the country’s inflation data showed some improving trends. Inflation rose more than expected, while inflation contracted at a slower-than-expected pace.
The reading indicated that the People’s Bank’s continued interest rate cuts through July are having some effect, although it remains to be seen whether China’s deflationary trend will sustainably reverse.
Sentiment towards Chinese markets has weakened significantly in recent weeks following weak economic readings from the country. The country’s benchmark indices were close to six-month lows.
Japanese stocks rise, sharply paring weekly losses
Japan and indices rose 2% and 1.5% respectively on Friday.
Both were down about 1.5% this week, but have recovered most of their losses earlier in the week.
Japanese markets rallied as Bank of Japan officials tried to play down unexpected hawkish news from the central bank from last week.
Bargaining in heavyweight tech stocks helped Japanese indices, as did positive earnings from major companies including Tokyo Electron. The stock rose 1.7% after reporting stronger-than-expected earnings in the June quarter as demand for the artificial intelligence sector picked up.
Broader Asian shares advanced, with tech-heavy shares in South Korea and Hong Kong’s index up between 1.5% and 2%. Technology gains coincided with a rebound in U.S. markets.
Australia rose 1.4% and fell 1.9% this week, recouping most of its losses this week.
The index slightly downgraded its growth outlook for the current quarter after unexpectedly striking a hawkish tone after a decline on Thursday.
