HONG KONG, Sep 13 (V7N) – Asian markets mostly climbed on Friday, with the yen sitting at a nine-month high, as investors anticipated a US interest rate cut next week following strong gains on Wall Street.

The positive momentum in equities was fueled by encouraging data showing the Federal Reserve’s progress in controlling inflation. Despite early-week losses driven by fears of a possible US recession, markets stabilized as traders turned their attention to the Fed's decision on September 18.

After a series of rate hikes starting in 2022 to combat inflation, the Fed is expected to cut rates for the first time in over a year. Investors are speculating whether the central bank will opt for a 25 or 50 basis point reduction, given signs of disinflation and a softening labor market.

US wholesale prices rose 0.2 percent in August, putting the annual benchmark at 1.7 percent, down from 2.1 percent in July. Stripping out food and energy, prices rose 0.3 percent, slightly above expectations.

Wall Street’s tech-heavy Nasdaq index rose one percent, while Asian markets mostly followed suit. Hong Kong’s Hang Seng Index gained over one percent, driven by strong performances from Alibaba, after its inclusion in a stock-buying program for mainland Chinese investors.

Elsewhere, markets in Shanghai, Sydney, Seoul, Singapore, and Manila also posted gains, while Tokyo struggled under pressure from a stronger yen, which has rallied significantly since July.

In currency markets, the yen traded at 141.02 per dollar, up from 141.78 yen on Thursday, amid expectations of further rate hikes by the Bank of Japan. The central bank is not expected to raise rates at its upcoming meeting, but investors are closely watching for any signs of future moves after last month’s surprise hike.

Key figures at 0230 GMT:

  • Tokyo - Nikkei 225: DOWN 0.9 percent at 36,507.10 (break)
  • Hong Kong - Hang Seng Index: UP 1.7 percent at 17,540.81
  • Shanghai - Composite: UP 0.4 percent at 2,726.70
  • Dollar/yen: DOWN at 141.02 yen from 141.78 yen on Thursday
  • Euro/dollar: UP at $1.1088 from $1.1078
  • Pound/dollar: UP at $1.3147 from $1.3126
  • Euro/pound: DOWN at 84.33 pence from 84.36 pence
  • West Texas Intermediate: UP 0.5 percent at $69.33 per barrel
  • Brent North Sea Crude: UP 0.5 percent at $72.31 per barrel
  • New York - Dow: UP 0.6 percent at 41,096.77 (close)
  • London - FTSE 100: UP 0.6 percent at 8,240.97 (close)

END/WBD/SMA/