Asian markets rise on China’s consumer spending push, Wall Street tumbles

Asian markets saw gains on Friday, overcoming Wall Street's latest losses. Markets in China rallied after state-run banks and other financial institutions were instructed to take more steps to encourage consumer spending. US futures and oil prices also edged higher.
Hong Kong’s benchmark index surged 2.4%, closing at 24,023.73, while Shanghai's Composite index jumped 1.8% to 3,419.56. China’s National Financial Regulatory Administration urged financial institutions to support the development of consumer finance, boost credit card use, aid borrowers facing financial difficulties, and enhance transparency in lending, according to news agency AP.
Economists believe China needs to boost consumer spending to revive its economy, though many are calling for deeper reforms, such as improving wages, social welfare, and public sector support in health and education.
In Tokyo, the Nikkei 225 climbed 0.7% to 37,053.10. However, South Korea's Kospi saw a slight dip of 0.3%, finishing at 2,566.36. Australia's S&P/ASX 200 gained 0.5%, closing at 7,789.70, while Bangkok’s SET index rose 1.2%. Taiwan's Taiex ended nearly unchanged.
On the other hand, Wall Street faced further setbacks as President Donald Trump's escalating trade war contributed to a significant 10% drop in the S&P 500. This decline triggered a “correction” designation, marking the first time since 2023 that the index dropped this much. The S&P 500 slid 1.4% to close at 5,521.52.
Stephen Innes from SPI Asset Management commented on the uncertainty facing traders, noting that they were bracing for more policy volatility. The looming risk of a partial US government shutdown, should Congress fail to pass its annual budget, added to the anxiety.
Trump’s trade policies continued to cause turbulence, with the president threatening to impose 200% tariffs on Champagne and other European wines unless the EU agrees to reduce tariffs on US whiskey. This comes as part of his ongoing push for reshaping trade relations through tariffs, which has contributed to market volatility.
In economic news, US inflation reports were somewhat positive, showing that wholesale prices increased less than expected. A separate report also indicated fewer unemployment benefit applications, signalling stability in the job market.
Stocks connected to artificial intelligence (AI) faced additional pressure, with Palantir Technologies dropping 4.8%, Super Micro Computer losing 8%, and Nvidia experiencing fluctuating results, ultimately closing down by 0.1%.
On Friday morning, US crude oil rose by 76 cents to $67.31 per barrel, while Brent crude climbed 69 cents to $70.57 per barrel. The US dollar strengthened to 148.80 yen from 147.82 yen, while the euro weakened slightly, falling to $1.0835 from $1.0855.