Asian Shares Mixed Amid Stable Gains On Wall St

Hong Kong: Shares were mixed Friday in Asia after Wall Street drifted higher as reports suggested the Federal Reserve may have more leeway to cut interest rates later this year to support the US economy if it weakens under the weight of President Donald Trump’s high tariffs. US futures and oil prices were little changed. Markets have calmed somewhat after the turmoil unleashed by Trump’s on-again, off-again tariffs offensive, aimed at compelling companies to base manufacturing inside the United States. But the policies are already taking a toll.

The United Nations on Thursday forecast slower global economic growth this year and next, pointing to the impact of the tariffs and worsening trade tensions. UN economists also cited the volatile geopolitical landscape and threats of rising production costs, supply chain disruptions and financial turbulence.

Tokyo’s Nikkei 225 lost 0.3 per cent to 37,659.39 after the government reported that Japan’s economy contracted at a faster rate than expected in the first quarter of the year. Exports fell and consumer spending was flat, according to the data which showed a contraction of 0.7 per cent from a year earlier.

Hong Kong’s Hang Seng dropped 1 per cent to 23,216.20 while the Shanghai Composite Index fell 0.6 per cent to 3,360.82. E-commerce giant Alibaba tumbled 5.2 per cent after the company’s financial performance missed forecasts. Seoul’s Kospi was nearly unchanged at 2,621.75 and the S&P/ASX 200 in Australia added 0.6 per cent to 8,349.30. Taiwan’s Taiex gained 0.3 per cent.

Most US stocks drifted higher in quiet trading Thursday following the jumble of mixedreports that offered little clarity on how the US economy is managing Trump’s trade war. The S&P 500 rose 0.4 per cent to 5,916.93, enough to extend its winning streak to a fourth day and to pull within 3.7 per cent of its all-time high set earlier this year.