EQUITIES
Asia-Pacific traded mixed on Friday, while Wall Street stocks rallied overnight. Hong Kong shares were a drag on the regional benchmark, with the Hang Seng index falling 1.62%, weighed down by tech stocks, as U.S. and Hong Kong dual-listed names took a hit from renewed fears that a row over audit records will force them to delist in the United States. The Shanghai composite inched 0.47% lower.
Japan stocks fell after rising earlier, after reported inflation data. The Nikkei shed 0.14%.
Australia’s S&P/ASX 200 stayed in positive territory as it advanced 0.35%, while the South Korea’s KOSPI struggled for direction, hovering just above the flatline. In Southeast Asia, the Singapore’s FTSE Straits Times Index rose 0.54%
U.S. stocks rallied overnight, led by chip stocks. The Dow jumped 1.02%, to close at 34,707.94. The S&P 500 added 1.4% at 4,520.16, and the Nasdaq Composite rose 1.9% to 14,191.84. Stocks have seesawed this week, alternating between up and down days. The S&P 500 and the Nasdaq are on track to close the week higher.
Russia stocks jump as trade resumes after almost a month's suspension, reflecting soaring global prices for oil, gas, and other commodities on fears the Ukraine crisis will threaten supply. Stocks had not traded on Moscow's bourse since Feb 25, the day after President Vladimir Putin sent troops into neighbouring Ukraine, prompting Western sanctions aimed at isolating Russia economically and then Russian countermeasures.
OIL
Crude prices were steady on Friday, despite the reported plan by the U.S. and allies in releasing more oil from storage to cool markets.
Brent crude futures was up 0.7% to $112.25 a barrel on Friday, after sliding 2.11% in the previous session. U.S. WTI crude futures meanwhile fell $1.03 to $111.14 a barrel, having dropped 2.25% in the previous session.
The prices slid overnight after the EU could not agree on a plan to boycott Russian oil and on reports that exports from Kazakhstan's Caspian Pipeline Consortium terminal could partially resume.
Despite the declines, both contracts were still headed for their first weekly gains in three weeks, with Brent on track for a 10% jump and WTI on course for a 7% rise.
CURRENCIES
Prodded by the fresh labor market data and pressure on the Fed to hike rates, the yield on benchmark 10-year Treasury notes was up 2.9 basis points to 2.370%, just off Tuesday's 22-month high of 2.417%. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 1.3 basis points at 2.126%.
The US dollar's gains against other currencies have been less dramatic, however, with the currency's index measure against six peers down a little at 98.469.
The yen meanwhile was headed for its worst week in two years on Friday, pummelled by Japan's rising import costs and low interest rates, while commodity currencies were set for a second consecutive weekly gain on the dollar as export prices remain elevated.
Russia's rouble traded firmly in Moscow overnight following Russian President Vladimir Putin's vow to start selling gas to "unfriendly" countries in roubles, but it handed back some gains in thin offshore trade. It was last at 106.42 per dollar.
GOLD
Gold prices were set for a third weekly gain in four as no material progress in Russia-Ukraine peace talks supported the safe-haven metal, although a spike in U.S. yields on fears of aggressive tightening measures dented bullion's appeal.
Spot gold remained elevated at $1,959.90 an ounce, hovering close to a more than one-week high scaled in the previous session, adding nearly 2% so far this week. U.S. gold futures meanwhile were flat at $1,965.30.
Spot silver rose 0.6% to $25.66 per ounce, while platinum gained 1% to $1,030.45 and palladium was flat at $2,523.01.
ECONOMIC OUTLOOK
Asian shares were traded mixed on Friday, though were headed for a second successive week of gains amid hawkish U.S. monetary policy, shifts in Chinese economic policy, and ongoing ructions in commodity markets due to the war in Ukraine.
Investors watched for the latest developments in the Ukraine-Russia crisis, with western leaders have agreed to increase military aid to Ukraine and tighten sanctions on Russia whose invasion of its neighbor entered a second month. Beaten-down shares of chipmakers and big growth names were snapped up supported by a fall in oil prices.
Investors also watched shares of Apple suppliers in Asia. The tech giant is reportedly planning a hardware subscription service for iPhones that could launch as soon as the end of this year. Apple rose over 2% on Thursday. In Japan, shares of Apple suppliers shed earlier gains. Murata Manufacturing shares jumped 0.62%, while Alps Alpine climbed 0.18%. Taiyo Yuden was up 0.18%. Over in Taiwan, Taiwan Semiconductor Manufacturing Company jumped 1%, while shares of Hon Hai Precision Industry slipped 0.63%.
The U.S. Purchasing Managers' Index and several other European economies are fairly decent with the benchmark index remaining above the 50-point threshold. This indicates that manufacturers are most optimistic about the outlook, although the military conflict presents an additional challenging in the operating environment.
