Most Gulf markets gain on hopes of fed rate cut
Most stock markets in the Gulf rose in early trade on Thursday, as softer US core inflation data maintained the possibility of future interest rate reductions by the Federal Reserve.
Data showed on Wednesday the US consumer price index (CPI) rose 2.9 percent year on year in December, meeting expectations, while core inflation increased by 3.2 percent, marginally below the predicted 3.3 percent.
Investors drew encouragement from the inflation data, which was further bolstered by Tuesday’s release of US producer price data showing moderate growth in December.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark stock index gained 0.2 percent, with shares in petrochemical maker Saudi Basic Industries Corp rising 1.6 percent.
China, HK stocks rise
China and Hong Kong stocks rose on Friday and were set to end the week higher as a slew of better-than-expected China economic data lifted market sentiment.
China’s blue-chip CSI300 Index climbed 0.5 percent by the lunch break, while the Shanghai Composite Index gained 0.4 percent. Hong Kong benchmark Hang Seng added 0.2 percent.
China’s economy ended 2024 on better footing than expected, helped by a flurry of stimulus measures. The economy grew 5.4 percent in the fourth quarter from a year earlier, significantly beating analysts’ expectations and marking the quickest rise since the second quarter of 2023.
Meanwhile, industrial output grew 6.2 percent from a year earlier in December 2O24, beating expectations and marked the fastest growth since April 2024.
The CSI300 and Hang Seng index were set to close the week 2.3 percent and 2.6 percent higher, respectively.
South Korean shares track wall street lower
South Korean shares edged lower on Friday, tracking overnight declines on Wall Street, but were still set for a fourth straight week of gains.
The benchmark KOSPI was down 4.50 points, or 0.18 percent, at 2,522.99 as of 0416 GMT.
The index has risen 0.5 percent this week, after a 3 percent jump in the previous week.
US stocks dipped on Thursday as a jump in the prior session cooled, while investors eyed the most recent corporate earnings and gauged economic data to determine the path of Federal Reserve rate cuts.
India’s benchmark indexes set to open
India’s benchmark indexes are expected to open largely flat on Friday as investors assess the quarterly results of heavyweights Reliance Industries, Infosys and Axis Bank.
The GIFT Nifty futures were trading at 23,322 as of 7:59 a.m. IST, indicating that the blue-chip Nifty 50 will open near Thursday’s close of 23,311.8.
Both the Nifty 50 and BSE Sensex rose about 0.4 percent each in the previous session after underlying US inflation softened in December, boosting the likelihood of further rate cuts by the Federal Reserve.
Japan’s Nikkei falls
Japan’s Nikkei share average fell on Friday amid caution ahead of market reaction to President-elect Donald Trump’s inaugural speech next week, while a stronger yen hurt exporters’ shares.
The Nikkei shed 0.98 percent to 38,193.05 by the midday break and was set to fall 1.58 percent for the week.
“What’s behind the market declines is a concern about a reaction to the comments from Trump who is due to be inaugurated on Monday.
Investors do not want to take risks for a possible big swing in the market,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
Australian shares flat
Australian shares traded flat on Friday, with gains in healthcare firms offset by losses in miners, including Rio Tinto, which tumbled on speculation around early-stage merger talks with London-listed smaller rival Glencore.
The S&P/ASX 200 index marginally fell 0.1 percent to 8,322.2 points by 2322 GMT.
The benchmark is on track to record a second consecutive weekly gain.
Rio Tinto’s shares fell 1.21 percent following reports of brief, unsuccessful merger talks with Glencore late last year, despite earlier speculation by Bloomberg News of ongoing early-stage discussions.
Asia stocks fall
The tone in global stocks turned weaker on Friday as Asian shares tracked overnight losses on Wall Street, even as bond yields slid amid a revival in bets that the Federal Reserve will cut interest rates in June.
Japanese equities were standout underperformers, with the Nikkei on course for its worst week in three months, buckling under the weight of a resurgent yen amid rising bets for a Bank of Japan rate hike next week.
Chinese stocks drew some support after official figures showed the economy expanded 5.4 percent in the fourth-quarter year-on-year, much stronger than expected and putting full-year 2024 growth at 5percent, bang in the centre of Beijing’s target.
Mainland Chinese blue chips were up 0.3 percent as of 0207 GMT, while Hong Kong’s Hang Seng added 0.14percent.
Saudi stock exchange closes trading higher
The Saudi Stock Exchange main index ended trading higher today, gaining 43.82, to close at 12256.06 points. The total value of trading reported was SAR6.1 billion. The Saudi Parallel Market Index ended the day by gaining 198.90 points, to close at 31498.71 points, valued at SAR42 million. The total number of shares traded was over two million.