Asia markets see modest gains on Wall Street’s lead, yen weakens before crucial Japan election; U.S. futures inch higher

Asian stocks mixed on Friday, following an upbeat session on Wall Street overnight, supported by strong earnings results and solid US economic data Gold held its recent decline below $3,340 per ounce on Friday, on track for its first weekly loss in three. Japan ( NKY:IND ) fell 0.32% to 40,034, with the broader Topix Index increasing 0.3% to 2,847 in Friday morning trading, marking the second straight session of gains as investors digested the latest inflation data. The Japanese yen was at 148.54 per dollar, down about 0.7% this week after polls showed Prime Minister Shigeru Ishiba’s coalition was in danger of losing its majority in the election on Sunday. Japan’s annual inflation rate fell to 3.3% in June 2025 , down from 3.5% the previous month. Core CPI also rose by 3.3%, remaining above the central bank’s 2% target. Food prices in Japan rose 7.2% year-on-year in June 2025, accelerating from a 6.5% increase in the previous two months and pointing to the steepest pace since March. A new 25% US tariff on Japanese goods, set to begin August 1, adds to the existing levy on auto exports—Japan’s leading export to the US. Investors are now focused on Japan’s upcoming Upper House election, scheduled for July 20, 2025. China ( SHCOMP ) rose 0.38% Sentiment was also boosted after U.S. President Trump softened his rhetoric toward China, boosting hopes for a trade deal. The U.S. Commerce Department imposed preliminary anti-dumping duties of 93.5% on Chinese graphite imports, a key battery material, after finding they were unfairly subsidized, Bloomberg News reported. Hong Kong ( HSI ) rose 1.00% to 24,734 in early trade on Friday, snapping two-day losses. India ( SENSEX ) fell 0.45% Australia ( AS51 ) rose 0.83% climbed 0.6% to above 8,690 on Friday, extending gains to a new all-time high. The Australian dollar strengthened to around $0.651 on Friday, recouping some losses in the previous session, as a surge in iron ore prices. In the U.S., on Thursday, all three major indexes ended higher as upbeat earnings and strong economic data helped push major indexes toward fresh record highs. U.S. stock futures edged up after Wall Street closed firmer Thursday, with the S&P 500 and Nasdaq hitting a fresh record: Dow +0.19% ; S&P 500 +0.16% ; Nasdaq +0.10% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Japan’s core inflation eases to 3.3% in June, slowest pace since March Australia’s unemployment rate rise to over three-year high of 4.3% in June Japan’s June trade surplus plummets, exports contract again amid U.S. tariffs China’s GDP growth slows to 5.2% in Q2, slightly beats forecasts China’s June industrial output rises by 6.8%, but retail sales & investment disappoints

Source: Seeking Alpha