Asian markets ended the week on a mixed note, with most major indexes falling on Friday after a strong week for investors following the U.S. Federal Reserve’s interest‑rate cut. The Fed’s decision to lower borrowing costs for the first time since December was welcomed, but Chairman Jerome Powell warned that future rate moves would be data‑dependent. Meanwhile, the U.S. labor market has shown signs of slowdown, with a series of reports indicating a decline in job growth that has tempered persistently high inflation. Despite these concerns, trading floors remained upbeat, and all three main U.S. indexes closed Thursday at record highs, driven by a surge in tech giants. Investor sentiment was further boosted by news that chip titan Nvidia will invest $5 billion in struggling U.S. rival Intel and jointly develop processors for PCs and data centers.
In Asia, the Bank of Japan’s latest meeting left interest rates unchanged, but a surprising 7‑to‑2 vote revealed that two members favored a hike. This outcome revived bets on a rate increase before year‑end, even as political uncertainty and economic worries—exacerbated by U.S. tariffs—persisted. The BOJ also announced it would begin selling exchange‑traded funds acquired during its earlier monetary‑easing campaign. The Tokyo market closed in the red after a strong start to the day, and losses were also recorded in Hong Kong, Shanghai, Singapore, Seoul, Taipei, Mumbai, Bangkok, and Jakarta. Conversely, Sydney, Wellington, and Manila posted gains, as did London, Paris, and Frankfurt. Investors now await a news conference from BOJ Governor Kazuo Ueda later in the day.
Later on Friday, a phone call between U.S. President Donald Trump and Chinese President Xi Jinping— their first since June— is scheduled. The leaders are expected to discuss a range of issues, including trade and the ownership of the popular video‑sharing app TikTok. The deadline for a U.S. tariff pause on Chinese goods approaches in November, and high‑level officials from both sides recently met in Madrid to discuss bilateral trade. These talks come at a critical juncture, with the global economy facing uncertainty and U.S.–China trade tensions escalating. As markets look ahead to next week, investors will closely monitor developments in the U.S.–China trade talks and the potential impact on the global economy, as well as interest‑rate decisions by central banks, including the Bank of Japan, amid slowing growth and rising trade frictions.
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