Business News

HONG KONG, (APP/AFP) – Asia stocks tilted slightly upwards Friday but remained cautious ahead of a speech from the US central bank head and after a weak lead from Wall Street as oil pulled back below $50 a barrel.
Comments from the Group of Seven leaders Friday morning stressed the
importance of global economic growth while stating the potentially disastrous economic consequences of Britain’s exit from the EU.
Traders are sitting tight for clues about the prospects of an imminent US rate hike as Federal Reserve chair Janet Yellen makes a speech at Harvard University later Friday, after recent hints of an increase in June or July from Fed officials.
“The market is off to a good start this morning. However, high valuations and the uncertainty created by Janet Yellen’s speech tonight may keep buyers from getting too optimistic today,” Ric Spooner, chief market analyst at CMC Markets said in a commentary.
Tokyo stocks rose 0.3 percent after Japanese inflation data showed prices falling in April and media reports about a consumption tax hike delay bolstered hopes of extra Bank of Japan stimulus measures.
The negative reading dealt a blow to Tokyo’s faltering war on deflation, raising pressure on the BoJ to expand its vast monetary easing programme, analysts said.
But sentiment was boosted by Japanese press reports saying that Prime
Minister Shinzo Abe was inclined to delay a planned sales tax hike over
concerns it could damage the already fragile economy.
Elsewhere Sydney was up 0.5 percent while Seoul added 0.3 percent and
Taiwan gained 0.4 percent.
But Hong Kong was down 0.3 percent while Shanghai slipped 0.2 percent.
Some energy firms also fell back in early trade after oil retreated from the $50 mark — a key psychological level it passed for the first time this year on Thursday in a sign the global supply glut may be easing.
At about 0245 GMT, US benchmark West Texas Intermediate for July delivery was down 29 cents at $49.19 a barrel while Brent North Sea crude, the European standard, was 33 cents lower at $49.26.
Sydney-listed Rio Tinto dropped 2.1 percent and BHP Biliton eased 0.5
percent, while in Hong Kong CNOOC fell 0.8 percent and PetroChina lost 1.5
percent.
But in Tokyo, explorer Inpex added 3.27 percent and refiner JX Holdings
gained 0.44 percent.