Asian Shares Mostly Higher As Investors Await US Jobs Data, Ruling On Trump Tariffs

Asian stocks rose broadly on Friday, even as the upside remained limited as investors eyed U.S. jobs data and a U.S. Supreme Court ruling on the legality of President Donald Trump’s sweeping tariffs.

As geopolitical tensions and economic uncertainty mount, the pivotal December jobs report will offer additional clues on the economic outlook and the Federal Reserve’s path for interest rates.

The dollar continued to outperform its rivals while U.S. Treasury yields moved sideways after Trump announced he would launch a $200bn mortgage bond-buying program in an attempt to lower mortgage rates.

On the geopolitical front, European governments have launched a two-pronged diplomatic offensive to convince Trump to back away from his claims on Greenland.

The U.S. Senate advanced a resolution aimed at curbing Trump’s ability to take further military action against Venezuela.

China’s commerce ministry said the export ban on dual-use items to Japan will only affect military firms, helping ease concerns that the move could affect rare earth exports used in a wide range of products, from autos to defense equipment.

Gold ticked lower in Asian trade on dollar strength while oil extended gains ahead of Trump’s meeting with the heads of major U.S. oil companies later today to convince them to support his plans in Venezuela.

China’s Shanghai Composite index surged 0.92 percent to 4,120.43 after data showed China’s consumer inflation accelerated at the fastest pace in nearly three years in December, driven mainly by higher food costs.

The producer price index fell 1.9 percent year-on-year in the month, reinforcing expectations for further policy support.

Hong Kong’s Hang Seng index ended up 0.32 percent at 26,231.79, led by gains in the technology sector.

Japanese markets surged on earnings optimism after Fast Retailing posted strong fiscal first-quarter earnings and also lifted its earnings outlook for the year. Shares of the Uniqlo clothing brand owner soared 10.7 percent.

Automakers also advanced on the back of a weaker yen, with Honda Motor and Toyota both rallying around 3 percent. The Nikkei average jumped 1.61 percent to 51,939.89 while the broader Topix index settled 0.85 percent higher at 3,514.11.

Seoul stocks recovered from a subdued start to end notably higher. The Kospi average surged 0.75 percent to 4,586.32, setting a record high for the sixth consecutive session.

Rising geopolitical tensions lifted defense stocks and shipbuilders, with Hanwha Aerospace surging 11.4 percent and Samsung Heavy Industries climbing 8.7 percent.

Australian markets finished marginally lower after two days of gains. Mining stocks fell, with Rio Tinto tumbling 6.3 percent in its steepest one-day decline since July 2022 after confirming that it is in preliminary talks with Glencore on possible business combination, including an all-share merger.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index dipped 0.15 percent to 13,696.25.

Overnight, U.S. stocks ended mixed in directionless trade as heavyweight technology and semiconductor stocks came under selling pressure, offsetting gains in the defense sector after President Trump demanded a $500 billion increase in annual defense spending.

In economic news, data showed first-time claims for U.S. unemployment benefits rose moderately last week amid a relatively low number of layoffs at the end of 2025.

The tech-heavy Nasdaq Composite dipped 0.4 percent to end lower for the first time in four sessions while the Dow climbed 0.6 percent and the S&P 500 finished marginally higher.

Business News