Asian stocks rose on Friday after U.S. stocks fell on Thursday in Wall Street’s latest sharp reversal following a better than expected report on unemployment eased concerns about the Economic slowdown.

US futures and oil prices changed little.

In Tokyo, the Nikkei 225 index closed 0.6 percent higher at 35,025.00. The yen erased earlier losses in morning trading and continued its fourth straight day of gains against the dollar. Japanese stocks then lost momentum, as they often fall when the yen rises.

Earlier this week, weaker-than-expected U.S. employment data raised concerns about a weakening economy as the Federal Reserve has kept high interest rates aimed at suppressing inflation for too long. This triggered a wave of selling in global markets, with the extent of the declines becoming even greater as investors unwound their yen carry trade positions.

In Friday trading, the US dollar fell from 147.28 yen to 147.16 Japanese yen. The euro cost 1.0926 dollars, down from 1.0918 dollars previously.

Inflation in China was higher than expected in July. The consumer price index rose by 0.5 percent compared to the same period last year. The reason for this was that food prices no longer slowed inflation and remained unchanged last month.

The Hang Seng in Hong Kong rose 1.3 percent to 17,117.03 and the Shanghai Composite Index fell slightly by 0.1 percent to 2,867.21.

In South Korea, the Kospi rose 1.2% to close at 2,588.43, while Australia’s S&P/ASX 200 rose 1.3% to 7,777.70.

Taiwan’s Taiex rose 2.9 percent, while chipmaker Taiwan Semiconductor Manufacturing Co. rose 4.2 percent, following the rise in big tech stocks on Wall Street. The SET in Bangkok rose 0.1 percent.

On Thursday, the S&P 500 rose 2.3% to 5,319.31, its best day since 2022, paring all but 0.5% of its loss from a brutal start to the week. The Dow Jones Industrial Average rose 1.8% to 39,446.49 and the Nasdaq Composite climbed 2.9% to 16,660.02, with Nvidia and other Big Tech stocks leading the way.

US Treasury yields also rose, suggesting that investors are more relaxed the economy after a report showed that fewer U.S. workers filed for unemployment benefits last week, a figure better than economists expected.

So far, the S&P 500 is still nearly 10 percent below its all-time high from last month. Such declines are not uncommon on Wall Street, and 10 percent “corrections” occur about every one to two years. After Thursday’s jump, the index is only about 6 percent below its record high.

Still, according to strategists at BNP Paribas, the market fluctuations resemble a “positioning-related crash” caused by too many investors entering and then exiting similar trades together, rather than the start of a long-term downmarket following a recession.

They say it is more like the “Flash Crash” from 2010 than the global financial crisis of 2008 or the recession caused by the pandemic in 2020.

Meanwhile, major US companies continue to present earnings reports for the spring, most of which are better than analysts expected.

Eli Lilly rose 9.5%, leading the market after the company higher profits and sales than Wall Street had predicted. Sales of its diabetes drug Mounjaro and its weight-loss product Zepbound are booming, and the company has raised its financial forecast for the year.

In the bond market, the yield on 10-year Treasuries rose to 3.99% from 3.95% late Wednesday.

In energy trading, the US benchmark oil price rose by 1 cent to $76.20 per barrel. The international standard for Brent oil fell by 7 cents to $79.09 per barrel.