Market Update: Asian Stocks Rise on China Recovery, Weaker Dollar - Everything You Need To Know

Asian markets ended the week with momentum, led by market signs that China's economy is stabilizing and a softer US dollar. Positive sentiment for the week arrives at a time when China said retail sales in August have jumped at the fastest rate in eight months, which hints at a possible revival in consumer spending.

Key Market News
Hong Kong and Australia led the Asia equities' advance and were boosted by upbeat data in China.
Japanese benchmarks rose 0.8 per cent as the yen slumped.
US futures declined, reflecting caution in global markets.
The dollar index relinquished some of the five-day advance after Chair Jerome Powell stated the Federal Reserve isn't in a rush to reverse interest rate hike. The breather for the dollar helped ease some pressure from emerging-market assets that bore the brunt of the selling earlier this week.
More on this from the subsequent sections,
Emerging Markets Under Mixed Pressure
It was a choppy week for emerging markets, with equities suffering their worst performance since June 2022. A gauge of emerging-market currencies is also on the cusp of year-to-date losses, courtesy almost entirely of the dollar's earlier strength.

Some analysts find the silver lining here. "There are opportunities in dollar-denominated emerging-market debt even though the challenges related to a stronger dollar," said Salman Niaz, head of global fixed income for AC ex-Japan at Goldman Sachs Asset Management.

South Korea and EV Sector
South Korean shares dived on Friday, with falls at battery makers after it emerged Donald Trump could end tax credits for the purchase of electric vehicles. The South Korean won also came in the crosshairs after that country is added to the US Treasury's foreign exchange monitoring list.
Chinese Tech Earnings in Focus
Earnings reports remain the main event from Chinese giants. Alibaba Group Holding Ltd is expected to release its report later Friday after a somewhat middling revenue growth posted by JD.com Inc. These earnings may give further clarity to the recovery in China's economy.

Also Read: NTPC Green Energy IPO Opens November 19: GMP, Price Band, and Key Details

Commodities Update
Oil: Headed for a weekly decline, weighed down by concerns about a potential global supply glut next year.
Gold: Gold remained steady close to its two-month low, supported by cautious sentiment as interest rate expectations were shifting.
Global Economic Indicators
New US data revealed that producer prices increased more than forecast, while the number of people seeking jobless benefits declined to a May low. According to these results, the US economy is still stable with the federal officials' policy of postponement of the additional cuts in the rates.

Federal Reserve and Rate Cuts
The market consensus for one December cut remains in place, and analysts anticipate at least two more cuts next year. But the Federal policymakers have reacted cautiously and still say that inflation would remain a concern and the underlying strength of US economy.

Asian Market Outlook
Asian equities appear positive, and remain hopeful, supported by the optimism emanating from China's recovery and dollar retreat. In the coming period, commodity price fluctuations and US fiscal policies' changes are likely to influence it.