Asian stocks in tight range, Yen passes key level
Asian stocks traded in narrow ranges after US shares fell from record highs as a disappointing forecast from the world’s largest retailer added to concern about the health of the economy. The yen strengthened past 150 per dollar.
Australian shares edged higher while those in Japan ticked down due to the stronger local currency. Equity index futures pointed to initial gains in Hong Kong after a gauge of US-listed Chinese shares climbed as Alibaba Group Holding Ltd. announced its fastest pace of revenue growth in more than a year.
Investors in Asia will be closely watching for a rebound in Chinese shares after losses on Thursday. Asian stocks have gained 2.5% this month, outperforming a gauge of global peers as enthusiasm over China’s DeepSeek AI lures money into the technology sector.
“We see a modest ‘sell US risk’ flow expressed through markets, with traders compelled by the momentum seen in China and HK,” said Chris Weston, head of research at Pepperstone Group in Melbourne. Alibaba’s strong earnings “more than justifies the recent migration of capital from a concentrated US tech position toward the China AI plays.”
The yen appreciated past the key level of 150 late Thursday to the strongest since December on speculation the Bank of Japan will hike interest rates sooner rather than later. Traders are pricing in a roughly 84% chance of a 25 basis point hike at the July meeting, up from a 70% chance at the start of the month, according to data compiled by Bloomberg.
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