Asian stocks traded in a narrow range on Friday as investors awaited further clarity on U.S. trade talks with major Asian economies, particularly China. Japan’s Nikkei 225 and TOPIX indexes outperformed, gaining 0.5% and 0.6% respectively, as weaker-than-expected consumer spending and wage data spurred speculation that the Bank of Japan may hold off on further interest rate hikes.
Chinese markets were subdued despite U.S. President Donald Trump highlighting a “positive” call with Chinese President Xi Jinping. Investors seemed unconvinced without signs of a concrete trade agreement. The Shanghai Composite and CSI 300 indexes remained flat, while Hong Kong’s Hang Seng slipped 0.4%, reflecting caution as recent data pointed to ongoing pressure in China’s manufacturing sector amid the prolonged trade war.
Across broader Asia, sentiment remained muted. Australia’s ASX 200 dipped 0.1%, struggling to break past recent highs. Indian markets showed some optimism, with Gift Nifty 50 futures indicating a positive open. Focus was on the Reserve Bank of India’s policy decision, where a widely expected 25 basis point rate cut—its third this year—aimed to support economic growth.
Meanwhile, U.S. markets remained cautious ahead of key nonfarm payrolls data, which is likely to signal further economic cooling. Tensions between Elon Musk and Donald Trump also weighed on Wall Street, affecting Tesla and its Asian suppliers. S&P 500 futures edged up slightly during Asian hours.
Overall, regional equity markets remain tethered to macroeconomic data, central bank cues, and unresolved trade developments. Investors are likely to stay risk-averse until clearer signals emerge from global policy shifts and U.S.-China trade negotiations.


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