Indian stock markets may continue to rise for the second consecutive day on Friday as investors expect the government to introduce tax relaxation measures for the super rich. Finance Minister Nirmala Sitharaman and senior finance ministry officials are likely to meet financial sector representatives on Friday in the capital.
Asian shares, on Friday, caught the tail of a Wall Street rally helped by China’s better-than-expected export figures, but fresh concerns about Sino-US trade ties are likely to limit gains in the region
Weighing on risk appetite was a report from Bloomberg that Washington is delaying a decision about licenses for US firms to restart trade with Huawei Technologies. That sent US stock futures down as much as 0.6% in early Asian trade. They were last quoted 0.4% lower.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% but was on track to lose 2.3% for the week.
Japan’s Nikkei average advanced 0.6%, while Australian stocks were flat and South Korean stocks gained 1.0%.
On Wall Street, the S&P 500 registered its largest one-day percentage gain in about two months on Thursday, while the Dow and the Nasdaq also climbed more than 1%.
However, that optimism was dented by the Bloomberg report, which has reinforced concerns the deterioration in US-China relations will place additional strain on an already fragile global economy.
Back home, share of Tata Motors may be in focus as the India’a largest commercial vehicle and leading carmaker has internally announced a block closure for three days starting 8 August, at its production plants in Pimpri (Pune) and Jamshedpur. According to a Mint report Tata Motors’ luxury car unit, Jaguar Land Rover (JLR), is also undertaking the block closure for three days, in an attempt to cut down the volumes of locally assembled models.
Mortgage lender Dewan Housing Finance Corp. Ltd (DHFL) on Thursday warned of delays in debt repayments in the “immediate future" amid ongoing negotiations with lenders on the resolution plan.
The yen strengthened as much as 0.4% against the dollar to 105.70 yen on a fresh worries triggered by a Bloomberg report.
US data pointed to a robust labour market as the number of Americans filing applications for unemployment benefits unexpectedly fell last week, allaying some worries about a recession and helping Treasury yields rise.
Benchmark 10-year Treasury yields closed 2.4 basis points higher at 1.715% after hitting 1.595% on Wednesday, which was their lowest level since October 2016.
Among currencies, the offshore yuan was stable versus the dollar in early trade but will be closely watched as traders assess the latest developments in the rapidly escalating trade war between the US and China.
Central banks in New Zealand, Thailand and India stunned financial markets on Wednesday with a series of significant interest rate cuts and pointing to policymakers’ dwindling ammunition to fight off a downturn.