Asian markets increased as China’s financial institutions were tasked with boosting consumer spending. While Wall Street experiences a downturn due to trade war tensions, several Asian indexes, particularly in China, marked notable gains. Despite uncertainties, mixed economic signals from the U.S. offered some optimism for recovery.

Asian markets saw notable gains on Friday, maintaining a positive trajectory despite declines in Wall Street. This uptick was particularly evident in China, where state-run banks and financial institutions received directives to enhance consumer spending. As a result, Hong Kong’s benchmark increased by 2.5%, reaching 24,038.85 points, while the Shanghai Composite index surged by 1.9% to 3,420.65.

China’s National Financial Regulatory Administration has instructed financial institutions to develop consumer finance strategies. These measures aim to encourage credit card use, provide assistance to borrowers facing difficulties, and ensure transparency in lending practices. Economists emphasize the necessity of increased consumer spending to revitalize the economy, advocating for broader reforms, including wage increases and enhancements in social welfare and public services.

In other Asian markets, Tokyo’s Nikkei 225 rose by 0.9% to 37,120.07 points, while South Korea’s Kospi experienced a slight decline of 0.2% to 2,569.43. Meanwhile, Australia’s S&P/ASX 200 gained 0.6% to 7,793.50, and Bangkok’s SET surged 0.9%. Taiwan’s Taiex also observed a modest increase of 0.3%.

Conversely, Wall Street’s performance faltered as President Donald Trump intensified the trade war, pushing the S&P 500 down over 10% from its last record. The index’s 1.4% decline was its first correction in 2023, closing at 5,521.52 points. These losses were exacerbated by Trump’s threats of substantial tariffs on European goods unless retaliatory measures were retracted.

The market experiences volatility due to uncertainties surrounding the consequences of Trump’s trade policies. Confidence in the U.S. economy has dwindled among households and businesses, with spending reductions anticipated to undermine economic vitality. Despite these challenges, recent reports indicated a milder-than-expected wholesale inflation and a decrease in unemployment claims, suggesting some stability in the job market.

On Wall Street, stocks linked to the artificial intelligence sector continued to decline, impacting overall stock indexes. Palantir Technologies fell by 4.8%, Super Micro Computer dropped by 8%, and Nvidia experienced fluctuations before closing down by 0.1%. Other stocks, like Tesla, also faced a downturn, while Intel’s shares rose significantly by 14.6% following the appointment of Lip-Bu Tan as CEO amid ongoing challenges within the semiconductor industry.

In early trading on Friday, U.S. benchmark crude oil prices increased by 46 cents to $67.01 per barrel, while Brent crude rose by 44 cents, reaching $70.32 per barrel. The U.S. dollar appreciated against the Japanese yen, moving to 148.63 from 147.82, while the euro dipped to $1.0845 from $1.0855.

In summary, Asian markets exhibited resilience amid challenges faced by U.S. equities due to economic uncertainty stemming from escalating trade tensions. Focus remains on China’s economic strategies to enhance consumer spending and stimulate growth in response to a sluggish economic environment.

In conclusion, Asian markets have demonstrated strong resilience, advancing in the face of challenging conditions posed by declining U.S. stocks amidst trade tensions. China’s measures to stimulate consumer spending highlight the urgent need for economic revitalization, while Wall Street’s recent downturn reflects the significant impact of ongoing trade uncertainties. Overall, economists continue to advocate for comprehensive reforms to ensure sustainable growth in the global economy.

Original Source: www.usnews.com

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