Coin Press - Markets rally on US data after Dow hits record on Wall St

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Markets rally on US data after Dow hits record on Wall St
Markets rally on US data after Dow hits record on Wall St / Photo: SPENCER PLATT - GETTY IMAGES NORTH AMERICA/AFP/File

Markets rally on US data after Dow hits record on Wall St

Asian and European markets rose Friday after a record day on Wall Street, boosted by a strong round of US data that reassured investors over the health of the world's top economy, while focus turns to the release of key inflation figures.

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With the much-hyped earnings report from bellwether chip titan Nvidia now in the rearview mirror, traders are once again able to concentrate on economic matters and the Federal Reserve's plans for interest rate cuts.

Thursday did not disappoint, with figures showing gross domestic product expanded more than initially thought in the second quarter, while jobless claims dipped.

The news indicated the central bank was achieving its goal of guiding the economy to a soft landing at the same time as it brings prices under control.

Next up is the Fed's preferred gauge of inflation later Friday, followed by the closely watched non-farm payrolls report a week later, which will play a major role in whether the Fed cuts borrowing costs next month and, if so, by how much.

While bank chief Jerome Powell said last week that it was time to begin lowering rates, some decision-makers remain cautious.

Luca Santos at ACY Securities pointed out that after Powell's speech, Atlanta Fed boss Raphael Bostic "hinted at a cautious stance regarding a rate cut in September, stressing the need for more data to avoid making a move that could lead to more rate hikes down the line".

"His comments underscore how pivotal the upcoming jobs report will be in determining the Fed's next steps," he added.

US markets ended on a mixed note, with the Nasdaq and S&P 500 weighed by a 6.4 percent drop in Nvidia after it released what was considered a disappointing earnings report.

However, the Dow bucked the trend and ended a fresh record high.

Asia ended the week on a high, with tech firms that took a hit Thursday as part of an Nvidia-fuelled retreat clawing back some of their losses.

Hong Kong climbed more than one percent, while there were also healthy gains in Tokyo, Shanghai, Sydney, Seoul, Singapore, Mumbai, Jakarta, Bangkok, Taipei, Wellington and Manila.

London opened on the front foot, with Paris also up after data showed French inflation hit a three-year low of 1.9 percent in August and the country's economy grew at a slower pace than previously estimated in the second quarter.

Frankfurt fell after closing at a record high on Thursday.

- Key figures around 0710 GMT -

Tokyo - Nikkei 225: UP 0.7 percent at 38,647.75 (close)

Hong Kong - Hang Seng Index: UP 1.6 percent at 18,073.20

Shanghai - Composite: UP 0.7 percent at 2,842.21 (close)

London - FTSE 100: UP 0.3 percent at 8,407.38

Dollar/yen: UP at 145.00 yen from 144.93 yen on Thursday

Euro/dollar: UP at $1.1079 from $1.1077

Pound/dollar: UP at $1.3171 from $1.3170

Euro/pound: UP at 84.12 pence from 84.11 pence

West Texas Intermediate: UP 0.5 percent at $76.25 per barrel

Brent North Sea Crude: UP 0.4 percent at $80.28 per barrel

New York - Dow: UP 0.6 percent at 41,335.05 (close)

O.Ignatyev--CPN