Asian Stock Market Rebound Helping U.S. Markets Recover Early Friday

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The major Asian stock indexes are trading mixed on Friday as investors continue to take its cues from Wall Street. On Thursday, the U.S. markets took another dive with the Dow Jones Industrial Average dropping more than 500 points for a second consecutive session.

Around China, Hong Kong's Hang Seng Index bucked the trend by posting a 1.18 percent gain. However, the Shenzhen composite continued to post declines. The Shanghai Composite attempted a slight rebound before falling back about 0.12 percent.

Japan's major indexes continued to struggle with the Nikkei 225 lower. This move was accompanied by a similar drop in the Topix Index. Losses were spread across almost all sectors.

A strong rally in gold helped the ASX 200 turn higher for the session. It rebounded from a 0.52 percent loss on Thursday to finish 0.31 percent higher on Friday. Energy stocks were down, but the financial sector was strong enough to post a 0.27 percent gain.

At 0508 GMT, the Hang Seng Index was trading 25563.53, up 297.16 or +1.18%. China's Shanghai Index was at 2596.04, up 12.58 or +0.49%. The Nikkei 225 Index is at 22559.33, down 31.53 or -0.14%. The S&P/ASX 200 is up 5895.70, up 11.90 or +0.20%.

U.S. Equity Markets

U.S. equity indexes are rebounding early Friday, helped by a recovery in Asia.

Investors aggressively sold stocks for a second day with the benchmark S&P 500 Index plunging 2.1%, the blue chip Dow Jones Industrial Average losing 545.91 points and the tech-driven NASDAQ Composite Index was off by 1.3 percent.

Looking at it another way, the S&P 500 Index is now down six straight trading sessions. It is also trading below its 200-day moving average for the first time since April.

The Dow has lost more than 1300 points in two-days. At one point during the trading session, the NASDAQ Composite was down over 10 percent from its recent top, putting it briefly in correction territory.

While worries over rapidly rising interest rates remained the catalysts behind the selling pressure, a report that said President Trump and Chinese President Xi Jinping would meet at next month's G-20 summit, did trigger a short-lived intraday technical bounce.

Technology led the selling on Wednesday, but it was joined on Thursday by a sell-off in the financial sector which posted the second-worst performer on the S&P 500, dropping nearly 3 percent. Among the biggest losers were shares of J.P. Morgan Chase, which fell 3 percent. Citigroup dropped 2.2 percent and Wells Fargo declined 1.9 percent.

In the tech sector, Netflix fell by more than 1 percent. Apple declined 0.9 percent and Amazon dropped 2 percent on top of the 6.2 percent it lost on Wednesday.

This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.