Key facts
- Asian shares retreated Friday in thin holiday trading, with markets in Greater China closed.
- U.S. futures declined as optimism over a U.S.-Iran deal was tempered by postponed nuclear program talks.
- Investor sentiment was impacted by expectations of central bank interest rate hikes to curb inflation.
- Tokyo's Nikkei 225 was little changed, while South Korea's Kospi and Australia's S&P/ASX 200 declined.
- U.S. stocks rose Thursday, led by technology companies, with Intel surging on a chip manufacturing announcement.
- Oil prices wavered, with Brent crude settling higher and U.S. benchmark crude falling slightly.
- The Federal Reserve is expected to raise interest rates later this year due to persistent inflation.
Asian shares retreated on Friday in thin holiday trading, with markets in Greater China closed. U.S. futures declined as optimism over a U.S.-Iran deal to end their war was dampened by the postponement of high-stakes talks regarding Iran's nuclear program and oil movement through the Strait of Hormuz. Investor sentiment was also impacted by expectations that central banks, including the Federal Reserve, will raise interest rates to combat inflation.
Tokyo's Nikkei 225 index wavered between gains and losses, ending little changed at 71,082.81. The Japanese government reported that consumer prices, excluding volatile fresh foods, were unchanged, but analysts anticipate a pickup in coming months despite higher fuel costs. The Bank of Japan recently raised its benchmark interest rate to a three-decade high of 1%.
In South Korea, the Kospi lost 0.5% to 9,019.22, and the S&P/ASX 200 in Australia declined 1.1% to 8,818.40. India's Sensex lost 1%. Markets in Hong Kong, Shanghai, and Taiwan were closed for the Dragon Boat festival.
On Thursday, U.S. stocks rose, with the S&P 500 gaining 1.1% to 7,500.58, the Dow Jones Industrial Average adding 0.1% to 51,564.70, and the Nasdaq composite surging 1.9% to 26,517.93. Technology stocks led the gains, with Intel jumping 10.6% after U.S. President Donald Trump announced the semiconductor giant would manufacture chips for Apple in the U.S. Nvidia rose 3%, and Micron Technology jumped 8.7%.
SpaceX fell 3.6% for a second consecutive day. Among gainers, American Airlines rose 3.7%, United Airlines rose 2.1%, and Carnival jumped 3.2%. Energy companies saw losses, with Exxon Mobil down 2.1% and Chevron down 2.2%.
Oil prices wavered. Brent crude settled 0.4% higher at $79.85 per barrel, while U.S. benchmark crude fell 0.2% to $75.85 per barrel. Earlier Friday, Brent crude was down 0.5% at $79.34, and U.S. crude lost 0.5% to $75.37. The U.S. dollar rose to 161.39 Japanese yen from 161.38, and the euro slipped to $1.1441 from $1.1458.