Asia-Pacific markets set to trade mixed as investors await a slew of regional economic data
Yukinori Hasumi | Moment | Getty Images
Asia-Pacific markets were set to climb Friday as investors look toward a slate of GDP data in the region.
Japan's benchmark Nikkei 225 is set to open higher, with the futures contract in Chicago at 37,790 while its counterpart in Osaka last traded at 37,800, against the index's last close of 37,755.51.
Australia's benchmark S&P/ASX 200 is set to rise, with futures standing at 8,411, higher than the index's close of 8,297.5.
Futures for Hong Kong's Hang Seng index stood at 23,235, lower than its last close of 23,453.16.
Japan is scheduled to release its quarterly gross domestic product data, which comes at a time when the country is locked in trade negotiations with the U.S., with initial talks between both sides not yielding a conclusive deal so far. Economists polled by Reuters expect a 0.1% economic contraction from the prior quarter.
A weak outcome for Japan's GDP can weigh on the Bank of Japan's rate hike pricing and push USD/JPY up towards resistance at 148.13, Commonwealth Bank of Australia wrote in a note. The Japanese yen is currently trading at 145.52 against the greenback.
Hong Kong and Malaysia are also set to report GDP data later in the day.
U.S. stock futures near the flatline after the S&P 500 posted a four-day rally on the back of U.S. and China's temporary tariff cuts and encouraging inflation reports. Futures tied to the Dow Jones Industrial Average added 32 points, or 0.08%. S&P 500 futures slipped 0.03%, while Nasdaq 100 futures inched down 0.07%.
Overnight stateside, the three major averages closed mixed. The S&P 500 climbed for a fourth session, adding to this week's rally after the U.S. and China agreed to temporarily slash tariff rates. The broad market index rose 0.41% to end at 5,916.93, while the Dow Jones Industrial Average added 271.69 points, or 0.65%, and closed at 42,322.75.
The Nasdaq Composite underperformed, slipping 0.18% and settling at 19,112.32.
— CNBC's Brian Evans and Scott Schnipper contributed to this report.
The S&P 500 closed higher for a fourth time on Thursday, aided by a soft inflation report and a drop in Treasury yields.
The broad market index added 0.41% to close at 5,916.93, while the Nasdaq Composite slipped 0.18% to 19,112.32. The Dow Jones Industrial Average added 271.69 points, or 0.65%, to finish the session at 42,322.75.
— Brian Evans
Fixed income investors are seeing a more concerning outlook than what the stock market is implying as Treasury yields remain stubbornly high, according to RSM chief economist Joseph Brusuelas.
"Given the risks to the economy—a recession is still a coin flip this year—and recovery in the equity markets, bond yields should be falling," Brusuelas wrote in a Thursday note. "They are not, and that is because fixed-income investors are sniffing out the logic of economic populism amid a move toward trade protectionism, which strongly implies higher inflation and rising long-term yields."
"Should Congress approve a large tax cut that is not paid for, don't be surprised if the bond market pushes yields back toward mid-April highs, which captured the pushback against the trade conflict," he added.
— Brian Evans
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Bloomberg
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