TOKYO: Japan stocks rose Friday, benefiting from a spike in crude oil prices while Chinese stocks fell amid concerns over the economy.
The Nikkei Stock Average was up 0.7% while Australia’s S&P/ASX 200 was up 0.2%.
The Australian benchmark was headed for its 12th straight day of gains, even after the country’s central bank Friday lowered both its medium-term forecasts for inflation and economic growth, saying the economy won’t grow fast enough in the next year to prevent a further rise in unemployment.
The grim outlook gives Australia room to further cut interest rates, staying in step with other central banks that have moved to ease policy settings in the past month amid weak growth and the deflationary impact of plunging crude-oil prices.
Investors also continued to watch volatility in the oil market, where WTI crude prices were up 1.5% at $51.21 a barrel in Asia trade.
“The snapback in the crude market could be yet another sign that energy prices are starting to find a bottom, which would carry great significance for financial markets,” says Allianz Global Investors chief investment officer Kazuyuki Terao. “We probably will have to wait until the second half of the year to know this definitively, however.”
The rise in oil is good for energy stocks, and also helps lift Japanese inflation, a long-time policy goal.
“Tonight’s U.S. jobs data will of course be closely eyed, but I’m also looking for signs of wage growth, since a tighter labor market has not really shown strong signs of getting more purchasing power in the hands of average consumers,” added Mr. Terao.
In China, stocks were on track for their third weekly decline with the Shanghai Composite Index down 0.7%. It would be the longest weekly downtrend since May last year, as the market has been battered
Recent weeks by consistently poor economic data and concerns over curbs on the amount of leverage in the market, despite the central bank’s move this week to cut the reserve requirement for banks.
