Asian stock markets were modestly higher Friday, but the political concerns of the Government sent more closely the Chinese market rate for the second day.
Trade throughout the region was quiet, with many investors away for summer vacation or waiting for further clues about the strength of the recovery of the global economy following the worst recession in decades. Oil prices rose moderately, as did the dollar against the yen.
Investors are confident about the outlook for Asian exports, after a government report showed the U.S. economy declined at a rate of 1 percent annualized in the second quarter. Unchanged, and a preliminary reading on gross domestic product, the updated data was better than expected 1.5 percent decline and said the evidence of the world’s largest economy was turning around.
However, gains were held back by fears about China’s measures to prevent overheating economy after the Bank policies and loose spending stimulus triggered frantic huge liquidity that has helped to raise the regional markets since March.
"Investors are still concerned about the policies in China," said Marcus Au, an analyst at Tanrich financial market in Hong Kong. "After helping the markets for months, the China story is starting to weigh on sentiment."
Japanese Nikkei 225 stock average rose 25.93, or 0.3 percent, to 10,499.90 despite news that the unemployment rate in Japan has risen to a time high of July and prices fell at a record pace – both the threatens to dull the economy recovered.
In China, the benchmark Shanghai dove 2.8 percent to 2,864.37, and Hong Kong’s Hang Seng was off 0.5 percent at 20,144.32.
Korean Kospi rose 0.2 percent, Senses India added 0.2 per cent in Australia’s main index rose 0.6 percent and Taiwan’s market gained 1.2 percent.
Overnight on Wall Street, the Dow Jones rose 37.11, or 0.4 percent, to close at 9,580.63. The benchmark has advanced to eight days in a row, rising 445 points, amounting to 4.9 percent.
The Standard & Poor’s 500 index rose 2.86, or 0.3 percent, to 1,030.98, while the Nasdaq Composite index rose 3.30, or 0.2 percent, to 2,027.73.
U.S. futures indicated a weak opening on Wall Street Friday. Dow futures were down 15, or 0.2 percent, to 9552.
Benchmark crude for October delivery added 4 cents to $ 72.53, extending a gain $ 1.06 per night.
The dollar rose to ¥ 93.68 from ¥ 93.49. The euro was slightly higher at $ 1.4360.
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