ECB rate cut, China trade, Japan household spending

A view of the automated container port in Qingdao in east China’s Shandong province. 

Zhang Jingang | Future Publishing | Getty Images

Asia-Pacific stocks rose on Friday as investors awaited key economic data from China and Japan, with markets also assessing the European Central Bank’s rate cut.

China’s May exports are expected to jump 6% year on year, according to a Reuters poll of economists, up from the 1.5% rise seen in April. Imports are forecast to rise 4.2% year on year, a slower pace than the 8.4% increase in April.

Japan also released its household spending figures for April — a key metric to assess if the Bank of Japan’s expected “virtuous cycle” of rising wages and prices is underway.

The average monthly consumption expenditures per household for April was 313,300 yen, up 3.4% in nominal terms and up 0.5% in real terms. This marked the first rise in real household spending since February 2023.

April pay is key to watch as wage hikes commonly take effect during this month when Japanese companies restart their financial years.

Japan’s Nikkei 225 as well as the Topic traded marginally below the flatline.

South Korea’s Kospi rose 1.45% as investors returned from a public holiday, while the small-cap Kosdaq gained 0.6%.

The Australian S&P/ASX 200 was up 0.27%.

Futures for Hong Kong’s Hang Seng index stood at 18,499, pointing to a stronger open compared to the HSI’s close of 18,476.8.

Overnight in the U.S., markets remained range-bound as traders looked ahead to Friday’s nonfarm payrolls report for May, with investors on the hunt for signs of a weakening labor market, which could support rate cuts from the Federal Reserve.

The S&P 500 ended Thursday marginally lower, after hitting an all-time intraday high earlier in the day. The Nasdaq Composite inched lower by 0.09%, and the Dow Jones Industrial Average rose 0.2%.

“To me, the market is still saying the economy is fine and not printing anything recessionary,” said Ross Mayfield, investment strategy analyst at Baird. “But it could be the case that the Fed has already been too tight for too long and the momentum of a cooling job market will be hard to stop once it starts.”

— CNBC’s Brian Evans and Samantha Subin contributed to this report.

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