(Bloomberg) — Asian shares rose, helped by some encouraging signs in the Chinese economy and a pullback in the dollar.
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Shares in Hong Kong and Australia rose after data showed China posted the highest retail sales growth in eight months and property prices fell at a slower pace. Japanese benchmarks rose about 0.8%, supported by yen weakness. American contracts have disappeared.
A gauge for the dollar ended a five-day gain, helped by comments from Fed Chairman Jerome Powell that the central bank will be in no rush to cut rates. Friday’s action provides a welcome respite for emerging market assets after being sold off for most of the week due to newly elected US President Donald Trump’s cabinet choices and uncertainties over China’s recovery.
“The strength of the dollar has clearly taken some of the returns away from local currency emerging market bonds, but we think the more attractive opportunity at the moment lies in the hard currency aspect of emerging markets,” said Salman Niaz, head of Global Fixed Income. for APAC ex-Japan at Goldman Sachs Asset Management, said on Bloomberg Television, referring to dollar-denominated debt. “We think a rate cut is on the horizon in December and we think there will be at least two cuts next year.”
U.S. two-year yields were little changed after rising on Thursday as traders cut expectations for a December rate cut.
A gauge of emerging market stocks was on track for its worst week since June 2022, while a separate index of emerging market currencies all but erased its gains for the year.
Alibaba Group Holding Ltd. reports among the most important earnings figures in Asia. later Friday after JD.com Inc, another Chinese consumption indicator, posted moderate sales growth.
Chinese retail sales were “pretty good” and reflected the central bank’s stimulus policy in late September, said Jason Chan, senior investment strategist at the Bank of East Asia. “Fiscal stimulus measures are on the way, with more details likely to be announced in December.”
Elsewhere, the dataset for publication in the region includes gross domestic product for Malaysia and Hong Kong. In India the markets are closed.
In commodities, oil is heading for a weekly decline, weighed down by the impact of a stronger dollar and worries that the global market will turn into a glut next year. Gold remained near a two-month low.