Asian Stock Market: Trades on mixed sentiment ahead of US data

• Asia-Pacific indices trade on a lower note on Friday.
• Market sentiment sours on inflationary anxiety.
• Commodity prices fell as USD regained strength.

Asian stocks were trading on a lower note on Friday, following the Wall Street subdued price action in overnight trading sessions.

Investors remain pessimistic for riskier assets as the fear of inflation resurfaces in the wake of upbeat US economic data.

MSCI’s Broadest index of Asia-pacific shares outside Japan was off 0.3%.

Japan’s Nikkei fell 0.8%, Kospi lost 0.62%, HangSeng declined 0.03%, and China’s Shanghai Composite gained 0.78%. 

Australia’s ASX 200 gained 0.3%, it touched a record high on Friday.

The upbeat US economic data released on Thursday showed recovery in the world’s largest economy. Investors feared a strong labor market and service PMI could bring Fed tapering much sooner than expected.

US Fed officials have consistently downplayed the inflationary fear, calling it transitory on the supply chain bottleneck. However, there is a need arising to start talking about stimulus tapering at least if not the timing.

New York Fed President John Williams said on Thursday that the US economy is still far from the point at which the policymakers might begin to withdraw its supportive measures, although it makes sense to begin discussing their option for adjusting policy.

Gold prices remained lower at $1,868.05, down 0.23% for the day.