Asian markets traded in green on Friday, as investor sentiments improved due to stronger US economic indicators and easing ties between the EU and US as Trump withdrew tariff threats for the bloc. In Hong Kong, the HSI inched 158 points or 0.6% to 26,788. Japan’s Nikkei also jumped 193 points or 0.36% to 53,882. Shanghai and Shenzhen also rose, up 0.37% and 0.56%, respectively. South Korea’s Kospi also traded in green, adding 0.27% to reach 4,965 at 8:00 am IST.Meanwhile, Wall Street also ended higher on Thursday, continuing the rally for a second day. The S&P 500 climbed 0.5%, while the Nasdaq Composite rallied 0.9% as sentiment improved across markets. Currency markets reflected the shift in sentiment, as dollar remained muted after suffering its steepest decline in the month, boosting demand for safe-haven assets. This pushed spot gold close to $4,960 an ounce, while silver climbed to a fresh all-time high. In currency trade, Japanese yen weakened 0.1% to 158.54 against the dollar ahead of the Bank of Japan meeting. The move followed government data released on Friday showing Japan’s core consumer prices rose 2.4% in December from a year earlier, matching analysts’ estimates. The rebound in global equities after losses earlier in the week highlighted that sentiment has turned in response to geopolitical developments. Ongoing gains in major AI-linked stocks, alongside improving diplomatic relations between the US and Europe, including discussions around Greenland, have encouraged investors to step back into riskier assets. Economic data from the US added to the upbeat tone as revised figures show that the economy expanded in the third quarter by slightly more than initially estimated. Investors will also be watching US PMI data, scheduled to for later on Friday, for further signals on economic momentum. Markets are also tracking developments at the Federal Reserve after US president Donald Trump said he would soon announce a successor to chair Jerome Powell.
