Asian Stocks Pull Back from Peaks as Dollar Gains Momentum Before Critical Week
Asian markets experienced a decline as investors opted to secure profits ahead of critical economic events and tariff deadlines.
U.S. futures held steady, reflecting resilience as global stock markets navigated through mixed performances and optimistic trade developments.
Key economic indicators influenced market sentiments, while commodity prices showed stability, with gold remaining flat and crude oil experiencing slight gains.
Asian Markets Retreat as Investors Lock in Profits
Asian shares saw a decline on Friday, with Japanese markets stepping back from record highs as investors opted to secure profits. This comes ahead of a pivotal week that includes U.S. President Donald Trump’s tariff deadline and multiple central bank meetings. The dollar strengthened against the yen after recovering from a two-week low, buoyed by positive U.S. economic data. Meanwhile, Japan's currency faced pressure due to political uncertainty, following reports that Prime Minister Shigeru Ishiba is set to resign.
Japan's Topix index surged more than 5% in the previous sessions, retreated by 0.7%
The Nikkei fell 0.5% from its yearly peak
Hong Kong’s Hang Seng Index dropped 0.5%
Mainland Chinese blue chips decreased by 0.2%
Australia's benchmark index declined by 0.5%
U.S. Futures Steady Amid Global Stock Trends
In contrast, U.S. S&P 500 futures rose by 0.2%, following a slight increase in the cash index, which achieved a new record closing high overnight due to strong earnings from Alphabet (NASDAQ:GOOGL) . The tech-heavy Nasdaq also recorded a new high. MSCI’s global stock gauge edged down 0.1% but remains near an all-time peak, reflecting a 1.3% weekly advance largely driven by optimism surrounding U.S. trade agreements with the European Union and China following a recent deal with Japan.
Next week, U.S. investors will face several critical events, including :
Trump’s August 1 deadline for trade deals
A Federal Reserve policy meeting
Key monthly payroll figuresMajor earnings reports are anticipated from companies like Amazon (NASDAQ:AMZN) , Apple (NASDAQ:AAPL) , Meta, and Microsoft (NASDAQ:MSFT)
Economic Indicators and Commodity Prices
The Bank of Japan will announce its own policy decisions on Thursday, coinciding with a meeting of Prime Minister Ishiba’s Liberal Democratic Party. After the European Central Bank's decision to keep interest rates steady, attention shifted to the varying prices of commodities, currencies, and government bonds as market dynamics evolved.
Gold prices remained steady at approximately $3,368 per ounce, tracking for a 0.5% increase over the week.
Brent crude futures climbed 0.3% to reach $69.35 per barrel
U.S. West Texas Intermediate crude futures rose by 0.2% to $66.18 per barrel
the euro ended down 0.2% against a strong dollar
The U.S. dollar gained 0.3% to 147.37 yen
U.S. 10-year Treasury yields eased to 4.39% on Friday, reversing prior gains
Japanese bond yields eased to 1.595%, just below this week's high
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