Asian shares experienced a boost on Friday, driven by a late rebound in U.S. technology stocks. Investors were encouraged by strong quarterly results from Meta Platforms, leading to a surge in their shares by 15% and 7%, respectively, in after-hour trading. Apple, however, faced a 3% decline after disappointing sales in China.
The positive sentiment in the U.S. market is expected to spill over to European markets, with EUROSTOXX 50 futures up 0.9% and S&P 500 futures extending gains by 1%. In Asia, Japan’s Nikkei added 0.5%, while MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 1.2%.
Despite the overall positive trend, concerns about weak sentiment in China weighed on local markets. China’s blue-chip stocks fell by 0.7%, and Hong Kong’s Hang Seng index saw a modest increase of 0.3%.
While the rebound in technology stocks alleviated some concerns, worries about U.S. regional banks persisted, with the KBW Regional Banking index falling by 2%. New York Community Bancorp reported increased stress in its commercial real estate portfolio, adding to market uncertainty.
Investors are eagerly awaiting U.S. payrolls data, with expectations of 180,000 new jobs added in January and a slight uptick in the jobless rate to 3.8%. A downside miss in payrolls could revive talks of a rate cut in March, although Fed Chair Powell had previously suggested it was unlikely.
In the bond market, longer-term Treasuries saw significant gains, with ten-year treasury yields down 27 basis points for the week. The U.S. dollar also faced pressure, falling 0.5% against its peers.
In energy markets, oil prices saw some recovery after OPEC+ decided to maintain its oil output policy unchanged. Brent crude futures rose by 0.6% to $79.15 a barrel, while U.S. West Texas Intermediate crude gained 0.5% to $74.2 a barrel.
Gold prices remained steady, reflecting ongoing market uncertainty, with safe-haven gold trading flat at $2,055.20.