(Bloomberg) — In Asia, global stocks continued their recovery, following gains on Wall Street on signs of resilience in the U.S. labor market and rising consumption in China.

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From Japan to South Korea to Australia, stocks rose across the region. Chinese shares gained after data showed the country’s inflation rose more than expected, raising hopes of a recovery in domestic demand. In Singapore, markets are closed.

U.S. stock futures rose in Asia following a rally on Wall Street on Thursday. The S&P 500 posted its best day since November 2022, while the Nasdaq rose 3.1%.

Investor sentiment improved after an improved US unemployment report eased recession fears triggered by last week’s worse-than-expected employment data. Focus will now turn to a new batch of US economic indicators due out next week, including consumer prices.

The improved growth prospects for China also bode well for risk appetite.

“China can actually outperform when other markets are so volatile,” Aisa Ogoshi, fund manager at JPMorgan Asset Management Japan Ltd., told Bloomberg TV. “Political tailwinds are starting to emerge in the country.”

It remains to be seen how long the recent recovery will last as investors continue to react to mixed signals from policymakers. For example, Federal Reserve Bank of Kansas City President Jeffrey Schmid indicated he would not be willing to support a rate cut if inflation was above target, according to comments in the U.S. on Thursday.

In Japan, shares of Tokyo Electron Ltd. jumped after the company raised its profit forecast for the fiscal year ending March and reported a bigger-than-expected rise in sales.

The yen weakened slightly against the dollar on Friday and is on track for its fourth day of depreciation against the greenback.

Treasuries remained steady in Asian trading after posting losses across the duration on Thursday. Swap traders continued to reduce bets on aggressive Fed easing in 2024. Cryptocurrencies rose sharply and investors returned to riskier assets in financial markets.

The global revaluation has been so dramatic that interest rate swaps at one point implied a 60 percent probability of an emergency Fed rate cut in the coming week – well before its next scheduled meeting in September. The current valuation suggests a cut of around 40 basis points for September.

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Against the backdrop of simmering tensions in the Middle East, oil prices rose slightly after a rally on Thursday. Gold prices fell.

Meanwhile, Canadian steel and aluminum producers urged Prime Minister Justin Trudeau’s government to quickly impose new tariffs on Chinese products, saying metals from the Asian industry were flooding the Canadian market and threatening local jobs.

Some of the key market movements:

Shares

• S&P 500 futures rose 0.2% at 12:06 Tokyo time

• Nasdaq-100 futures rose 0.3 percent

• The Japanese Topix rose 1.5 percent

• Australia’s S&P/ASX 200 rose 1.5%

• The Hang Seng in Hong Kong rose 2 percent

• The Shanghai Composite rose 0.3%

• Euro Stoxx 50 futures rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%

• The euro was little changed at USD 1.0921.

• The Japanese yen fell 0.1% to 147.44 per dollar

• The offshore yuan rose 0.1% to 7.1768 per dollar.

Cryptocurrencies

• Bitcoin rose 3% to $61,323.31

• Ether rose 4.2% to $2,678.57

Bonds

Raw materials

• West Texas Intermediate crude oil rose 0.3 percent to $76.39 a barrel

• The spot price of gold fell 0.2 percent to $2,423.15 an ounce.

This story was created with the assistance of Bloomberg Automation.

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