Investing.com — Most Asian stocks were lower on Friday as mixed economic data from China raised concerns while investors reassessed expectations for interest rate cuts following warnings from a number of Federal Reserve officials. It fell.
Regional markets were weaker on Wall Street, as U.S. stock benchmarks briefly reached record highs before closing lower. U.S. stock index futures are also dipping their toes into Asian trade.
A series of Fed officials warned that it was still too early to ask the central bank to cut rates and that the central bank needed more confidence before it could begin easing policy.
Their comments significantly undermined optimism over slightly softer U.S. data in April, when investors had begun pricing in an increased likelihood of a September interest rate cut.
Moderate economic data from China also weighed on sentiment on Friday, but the country's biggest tech companies were the only bright spot among Asian stocks.
Chinese market retreats due to mixed data
China fell about 0.2% as a flurry of economic indicators gave a mixed outlook for Asia's largest economy.
April's growth rate was faster than expected, indicating that manufacturing activity is recovering. But on the other hand, similarly fell well short of expectations.
Other data shows a sustained decline in Chinese nationals, undermining recent optimism about government efforts to support the struggling real estate sector.
Concerns about China's economy have caused the Hong Kong index to sharply reduce its early gains and is now up 0.2%.
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alibaba 'Big Short' Barry soars as he increases stakes
However, Alibaba Group's (HK:) (NYSE:) Hong Kong shares were hit by a filing overnight that revealed that an investment company run by Michael Burry of “Big Short” fame committed fraud. The stock price soared in response, rising 7% to a seven-month high. Increased stake in major e-commerce companies.
Alibaba's rise has spread to other tech giants such as Tencent Holdings (Hong Kong:) and Jingtocom (Hong Kong:) (Nasdaq:). Barry was also seen increasing his stake in JD, which is now his largest position.
Chinese technology major Baidu Inc (HK:) (NASDAQ:) rose nearly 4% on forecasts for increased demand from artificial intelligence, even though first-quarter profits fell short of expectations.
Asian stocks broadly fell, reversing Thursday's big gains as markets reassessed the outlook for U.S. interest rates.
Japan fell 0.4%, but Japan as a whole rose 0.2%.
Australian shares fell 0.6% as worries about China weighed on major mining and consumer goods stocks.
South Korea fell 0.8% and India index futures showed a weaker trend.