European and Asian stocks exhibited a predominantly positive trend on Friday, looking ahead to a report on U.S. employment expected to reflect a robust economy despite enduring high interest rates. Oil prices and U.S. futures also saw gains.
Germany's DAX rose by 0.3% to 17,958.12, while Paris's CAC 40 increased by 0.5% to 7,950.67. London's FTSE 100 added 0.3% to 8,198.88. The S&P 500 futures were up 0.3%, and the Dow Jones Industrial Average futures gained 0.6%.
Tokyo and mainland China markets were closed for holidays.
The Japanese yen strengthened slightly against the U.S. dollar, with reports of significant central bank intervention to prevent the dollar from rising further. The Bank of Japan's recent decision to abandon its negative interest rate policy and raise its benchmark rate to zero to 0.1% from minus 0.1% might result in further rate hikes, according to Marcel Thieliant of Capital Economics.
In Asian trading, Hong Kong's Hang Seng surged 1.5% to 18,475.92, following Wall Street's gains. News of fresh stimulus measures by Chinese leaders to boost the economy also drove buying, particularly in technology shares. E-commerce giants Alibaba and JD.com saw gains of 4.1% and 5.5%, respectively, while Baidu climbed 4.4%.
Australia's S&P/ASX 200 rose by 0.6% to 7,629.00, but Seoul's Kospi slipped 0.3% to 2,676.63. Taiwan's Taiex edged up by 0.5%.
India's Sensex declined by 0.9% to 73,952.37.
On Thursday, the S&P 500 increased by 0.9%, rebounding from a sharp swing earlier in the week when the Federal Reserve indicated it was likely postponing interest rate cuts but not planning hikes. The Dow rose by 0.9%, and the Nasdaq composite jumped by 1.5%.
Later on Friday, the U.S. government is set to report on last month's job additions, a highly anticipated update. Economists anticipate a slowdown in hiring, although a recent report showed fewer U.S. workers applied for unemployment benefits than expected, indicating a solid job market despite high interest rates.
The U.S. economy faces a delicate balance, aiming to remain strong enough to avoid a recession but not so strong as to worsen stalled progress on inflation. Persistent high inflation prompted Federal Reserve Chair Jerome Powell to suggest on Wednesday that it may take longer than expected to gain enough confidence to cut interest rates.
In energy markets, U.S. benchmark crude oil gained 13 cents to $79.08 per barrel on the New York Mercantile Exchange, following a slight loss on Thursday. Brent crude, the international standard, added 13 cents to $83.80 per barrel.