Asian markets opened on a firm note on Friday with investors indulging in some buying amid renewed hopes of a global economic recovery following encouraging reports from the U.S. However, with a section of investors choosing to tread cautiously ahead of the weekend, some of the markets in the region have come off their highs.
Bank stocks are finding good support in the Australian market. Mining and energy stocks are trading mixed. The benchmark S&P/ASX 200 index, which advanced to 4,598.5 in early trades, is currently in negative territory at 4,575 with a loss of 7.2 points or 0.2%. The broader All Ordinaries index is down 8.3 points or 0.2% at 4,613, well off the day's high of 4,635.1.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac are up 0.3%-1%. Bendigo & Adelaide Bank and Bank of Queensland are up with marginal gains.
Among mining stocks, BHP Billiton is up marginally and Rio Tinto is gaining about 0.4%, while Fortescue Metals and Newcrest Mining are trading lower by 0.6% and 1.6% respectively.
In the energy space, Oil Search and Origin Energy are up with modest gains. Woodside Petroleum is trading flat, while Santos is in negative territory with a sharp loss of 2.2%.
Virgin Blue Holdings is trading lower by about 1.5% following the company's international ambitions hitting turbulence after the U.S. government issued a preliminary ruling rejecting a proposed tie-up with Delta Air Lines on trans-Pacific routes.
In the currency market, the Australian dollar opened at a four-month high and was quoting at US$0.9230-US$0.9232, up from Thursday's close of US$0.9215-US$0.9217. The Australian dollar is currently trading at 0.9211 to the U.S. dollar.
The Japanese stock market is trading notably higher, with investors picking up stocks from across various sectors. A slightly weaker yen and fairly encouraging Japanese GDP data too are contributing to the surge.
The benchmark Nikkei 225 index, which was up 181.4 points or 2% at 9,279.8 at the end of the morning session, is currently up 141 points or 1.5% at 9,239.40.
The mood is so bullish at present that just 13 stocks out of the 225-stock strong Nikkei index were down in negative territory at the end of the morning session.
Machinery, automobile, technology and marine transport stocks are mostly trading higher. Electric power, banking and pulp & paper stocks are trading mixed.
Canon Inc., Sumitomo Heavy Industries, Marui Group, Fast Retailing, Japan Tobacco, Konica Minolta, NTT Data Corp., Mizuho Securities, Sharp Corp., Mitsubishi Rayon, Daiwa House and J Front Retailing are up 3%-5%.
Pioneer Corp., Advantest, JX HD, Mitsubishi Chemicals, Suzuki Motor, Mitsui Engineering, Mazda Motor, Seven & I Holding, Nissan Chemicals and Nisshin Steel are also trading sharply higher.
Japan's gross domestic product expanded a revised 0.4% in the second quarter of 2010 compared to the previous three months, the Cabinet Office said Friday - topping last month's preliminary reading of 0.1%. On an annualized basis, GDP jumped 1.5% - blowing past the preliminary mark that showed a 0.4% gain.
Nominal GDP was down 0.6% on quarter versus the 0.9% decline indicated last month. The revised deflator showed a 1.7% decline after posting an initial reading of -1.8%.
Capex also saw a big jump, revised up to a 1.5% increase from 0.5% gain.
Members of the Bank of Japan have pledged to maintain indefinitely the current extremely accommodative monetary conditions, minutes from the bank's monetary policy meeting on August 9-10 revealed on Friday.
The board members also acknowledged that the surging yen is likely to hurt exporters and could force production sits to move abroad, the minutes showed. The board members agreed to closely monitor the yen and its impact.
At the meeting, the BoJ maintained its key interest rate at 0.10%, in line with expectations. The bank also withheld from unveiling further support measures to tackle deflation. The bank also maintained its economic assessment, saying that the nation is seeing "further signs of a moderate recovery," induced by improvements in emerging economies.
In the currency market, the U.S. dollar traded in the upper 83 yen range in early deals in Tokyo. The yen is currently trading at 84.24 to the U.S. dollar.
The South Korean market is trading notably higher on Friday with encouraging economic reports from U.S. triggering some strong buying in stocks across various sectors.
Banking, technology, shipping and oil stocks are mostly up with notable gains. The benchmark KOSPI index is up 19.6 points or 1.1% at 1,804. Among bank stocks, Woori Finance, Shinhan Financial and KB Financial are up 1.7%-2%, while Korea Exchange Bank is up as much as 3.3%.
Technology stocks LG Display LCD, LG Electronics, Samsung Electronics and Hynix Semiconductor are up 1.7%-2% over their previous closing prices.
Among shipping stocks, Hyundai Heavy Industries, STX Pan Ocean and Daewoo Shipbuilding are trading higher by 1.8%-2%, while Samsung Heavy Industries is up with a gain of 2.7%.
Oil stocks SK Holdings and S-Oil are up 3.2% and 5.3% respectively. KEPCO is trading stronger by about 3.7%. Steel stocks Hyundai Steel and POSCO are trading modestly lower.
Among automobile stocks, Ssangyong Motor is down 1.8%, while Kia Motor and Hyundai Motor are up 0.3% and 1% respectively. Airlines and telecommunications stocks are up with modest gains.
Among other markets in the Asia-Pacific region, Taiwan and New Zealand are up with modest gains, while Shanghai and Hong Kong are trading weak. Markets in India, Malaysia, Singapore and Indonesia are closed for holidays today. Markets across the region ended mostly higher on Thursday.
On Wall Street, stocks closed with modest gains on Thursday, as jobless claims fell by more than forecast, although dark clouds from the European financial crisis limited the upside.
The major averages saw some downside in late-session dealing but managed to end the day above the unchanged line. The Dow edged up by 28.2 points or 0.3% to 10,415.2, the Nasdaq advanced by 7.3 points or 0.3% to 2,236.2 and the S&P 500 ended up 5.3 points or 0.5% at 1,104.2.
Major European markets ended with strong gains on Thursday. The U.K.'s FTSE 100 index and the French CAC 40 index both jumped by 1.2%, while the German DAX index ended 0.9% up.
Crude oil prices settled lower on Thursday, reversing from a multi-week high reached during the session as traders cashed in profits. Modest strength in the greenback also weighed. Light, sweet crude for October delivery settled down US$0.42 at US$74.25 a barrel on the New York Mercantile Exchange, after trading as high as US$75.96.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.