Investing.com-- Most Asian stocks rose on Friday as unexpectedly positive Chinese factory activity data and more stimulus measures in the country helped improve sentiment before a closely watched U.S. jobs report.
China rolled out more measures to support its beleaguered housing market, while also cutting foreign exchange reserve requirements for local banks to release more dollars and buoy the yuan.
The move, which came as a private survey showed Chinese factory activity unexpectedly grew in August, helped spur some optimism over Asia’s largest economy, which is otherwise struggling with a sluggish post-COVID economic recovery.
The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.6% and 0.3%, respectively. Trading in Hong Kong was suspended on account of super Typhoon Saola, which is expected to make landfall in China’s Guangdong province later in the day.
Asian stocks buoyed by China optimism
Broader Asian stocks rose on the prospect of an economic recovery in the region’s biggest trading partner.
Indian stocks eye weak open as Adani woes offset strong GDP data
A report published by the Organized Crime and Corruption Reporting Project, a global network of investigative journalists, alleged that the firm consistently bought its own shares off open markets through offshore entities, with the intent to boost its own share price.
Shares of companies under the firm slumped on Thursday, and are likely to see extended losses on Friday.
Concerns over Adani largely offset a stronger-than-expected GDP reading, which showed that the Indian economy grew 7.8% in the June quarter.
Nonfarm payrolls in focus
Focus is now squarely on key U.S. nonfarm payrolls data for August, due later in the day. Any signs of resilience in the jobs market gives the Federal Reserve more headroom to keep raising interest rates- a scenario that bodes poorly for Asian markets.
While data released this week showed that the U.S. economy was cooling, strength in consumer spending and the labor market is expected to keep inflation sticky and the Fed hawkish.
Most Asian markets were still nursing steep losses for August as fears of rising U.S. rates and worsening Chinese growth battered sentiment.
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