Asia-Pacific markets traded mixed on Friday as concerns over a global trade war eased following relatively restrained tariffs imposed by the US and China on each other. Sentiment also turned cautious ahead of a key US jobs report Investors also awaited constructive talks between the US and China to ease a trade spat while continuing to expect more measures from Beijing to spur market confidence. Japan ( NKY:IND ) fell 0.46% to below 38,900 while the broader Topix Index lost 0.7% to 2,730 on Friday, with Japanese shares breaking three straight days of gains as a strong rebound in domestic personal spending. The Japanese yen strengthened past 152 per dollar, reaching its highest level in nearly two months, as expectations grow that the Bank of Japan will continue raising interest rates this year. Household spending in Japan rose by 2.7% year-on-year in real terms, marking the first increase in five months and significantly surpassing the forecasted 0.2% gain. Japan’s foreign reserves increased by $9.92 billion to $1.24 trillion in January 2025, hitting the highest level since September last year. China ( SHCOMP ) rose 1.57% to around 3,290, while the Shenzhen Component gained 1.5% to 10,550 on Friday, reaching their highest levels in over a month. Sentiment was also supported by easing concerns over a potential trade war between China and the US, as both countries adopted a more cautious stance on tariffs. However, caution ahead of Chinese CPI and PPI data for January tempered further gains, as deflation risks persisted. Hong Kong ( HSI ) rose 1.29% to 21,055 in Friday morning trade, marking the second session of gains and hitting their highest level in two months amid broad sector strength. India ( SENSEX ) fell 0.14% The Reserve Bank of India lowered its key repo rate by 25 bps to 6.25%, marking the first-rate cut since May 2020 during the February meeting. Australia ( AS51 ) fell 0.11% to around 8,510 on Friday, breaking a two-day winning streak, with mining and energy stocks leading the decline amid weaker commodity prices. The Australian dollar rose to around $0.629 on Friday, approaching a two-week-high, as fears of an escalating global trade war eased In the U.S., on Thursday, all three major indexes ended mixed , as investors digested latest batch of corporate results ahead Amazon earnings and Friday's job report. U.S. stock futures edged lower on Friday as investors prepared for the release of the highly anticipated monthly jobs report: Dow -0.07% ; S&P 500 -0.09%; Nasdaq -0.08%. Meanwhile, investors now await the U.S. nonfarm payrolls report due later today, which could offer more clues about the Federal Reserve's interest rate path. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s services sector growth slows to four-month low in January Japan’s Jan services PMI revised upward to 53; real wages rises for 2nd consecutive month Trump in 'no hurry' to speak to China's Xi Jinping over escalating trade tensions Tit-for-Tat: China hits back with tariffs on U.S. coal and LNG, unveils Google probe U.S. will delay Canada tariffs as countries work on beefing up border security
