Currency traders at the KEB Hana Bank headquarters in Seoul monitor the Korea Composite Stock Price Index and the U.S. dollar to South Korean won exchange rate, capturing the pulse of South Korea’s financial activity in real time. The scene illustrates the interconnected nature of global trading, where every detail from local screens contributes to a broader picture of market sentiment.
Across Asia, stock performance was varied on Friday following a downturn on Wall Street fueled by concerns over U.S. President Donald Trump’s policies. In China, markets continued their two-day decline, and Hong Kong’s Hang Seng index dropped by 2% after China's decision to hold key lending rates steady. Meanwhile, traders continued to unload technology stocks after a recent surge.
In other Asian trading centers, Japan’s Nikkei 225 in Tokyo recorded a modest gain as the market reopened after a holiday, supported in part by a surge in rice prices which helped cushion the impact of a lower-than-expected core inflation rate. Korea’s Kospi and Australia’s S&P/ASX 200 posted slight gains, while markets in Bangkok and Taiwan experienced minimal fluctuations.
Meanwhile, on Wall Street, major indices such as the S&P 500, Dow Jones Industrial Average, and Nasdaq composite showed minor declines amid a backdrop of heightened market volatility. Investors are on edge as concerns over Trump’s trade war create uncertainty about economic prospects, even as data like reduced unemployment benefit filings and stronger-than-expected home sales provide some reassurance.
Fed Chair Jerome Powell has noted that extreme uncertainty, driven by both trade tensions and potential reductions in federal spending, is hindering reliable forecasting of economic trends. This uncertainty has contributed to a pullback in stock prices, with some companies experiencing notable price swings despite posting profit results that met or slightly exceeded expectations. For instance, Darden Restaurants saw a significant jump in its share price after matching profit expectations, while Accenture’s stock dropped amid fears over potential revenue losses from reduced U.S. government spending.
In other global developments, Britain’s FTSE 100 experienced a minor fall following a decision by the Bank of England to keep interest rates unchanged. Additionally, crude oil prices saw modest gains in electronic trading in New York, with both U.S. benchmark crude and Brent crude rising slightly, and the U.S. dollar strengthened against major currencies such as the Japanese yen and the euro.