Asian stocks are shrugging off the latest setback on Wall Street as Chinese factory activity wanes. – WUTR/WFXV – CNYhomepage.com

A currency trader walks past a screen showing the U.S. dollar to South Korean won exchange rate at a currency exchange showroom in Seoul, South Korea, Friday, May 31, 2024. (AP Photo/Lee ​​Jin-man)

Asian shares rose on Friday as investors shrugged off another decline on Wall Street while an official survey showed weakening activity in Chinese factories.

Tokyo’s Nikkei 225 gained 0.2% to 38,119.96 and Seoul’s Kospi gained 0.4% to 2,646.44.

Shares of Chinese companies rose even as the survey showed further pressure on an economy already burdened by the prolonged crisis in the real estate industry. However, negative indicators often fuel speculation that they will prompt Beijing to counteract with growth-friendly policies.

Hong Kong’s Hang Seng index rose 1.2% to 18,446.05 and the Shanghai Composite index rose 0.3% to 3,099.72.

Australia’s S&P/ASX 200 index rose 0.5% to 7,668.90.

On Thursday, the S&P 500 index fell 0.6% to 5,235.48, even though most of the index and Wall Street stocks were higher. The Dow Jones Industrial Average fell 0.9% to 38,111.48 and the Nasdaq Composite lost 1.1% to 16,737.08.

Friday will bring the monthly update to the Federal Reserve’s preferred measure of inflation. The final factor influencing the market is reporting financial results. Earnings were largely better than expected for early 2024.

Salesforce, which helps companies manage customers, lost almost a fifth of its value after reporting weaker revenue for the latest quarter than analysts expected. Its shares fell 19.7%.

Kohl’s fell even further – 22.9% – after reporting a surprise loss for the most recent quarter when analysts expected a profit.

Nvidia finally lost momentum and fell 3.8% after it beat analyst expectations in its latest earnings report, further fueling Wall Street’s frenzy around artificial intelligence technology.

The market was supported by better-than-expected earnings reports from various companies. Best Buy beat forecasts even though its revenue fell below expectations last quarter and its stock rose 13.4%. Foot Locker gained 15% after it also posted a better-than-expected profit even though sales rose below analyst forecasts.

Stocks also broadly gained on easing Treasury yields in the bond market, providing relief after rising earlier in the week on concerns about weak demand for Treasuries following several U.S. government auctions. Higher rates of return put downward pressure on all types of investments.

Yields fell on Thursday after several reports showed the U.S. economy was not as strong as expected.

One report showed that more American workers than expected filed for unemployment benefits last week, although the number of layoffs remains low compared to history. Another suggested that overall growth in the U.S. economy may not have been as strong as previously thought.

A slowing economy could increase the Federal Reserve’s confidence that inflation is firmly on track to its 2% target. That, in turn, could persuade him to lower the federal funds rate, which has remained at its highest level in more than two decades.

The yield on the 10-year Treasury fell to 4.54% from 4.62% late Wednesday. The yield on two-year bonds, which more closely reflects expectations for Fed action, fell to 4.92% from 4.98%.

Among other gains, C3.ai jumped 19.4% after the software maker beat expectations on both earnings and revenue in the latest quarter. HP gained 17% after beating earlier profit forecasts.

Many retailers are also reporting, as they usually do at the end of each earnings season, and scrutiny is heightened over concerns about whether American households will be able to keep spending. Persistently high inflation harms them, especially those with lower incomes.

Dollar General moved from profit to loss at 8.1% after beating profit forecasts and beating revenue expectations in the most recent quarter. The retailer, which serves many lower-income customers, said it saw a significant increase in traffic to its stores throughout the quarter.

Build-A-Bear Workshop fell 13.9%. The company reported a larger decline in revenue and results for the latest quarter than analysts expected and said it faced an overall “weaker spending environment.”

In other trading early Friday, U.S. benchmark crude oil lost 35 cents to $77.56 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 24 cents to $81.64 a barrel.

The U.S. dollar fell to 156.77 Japanese yen from 156.82 yen. The euro fell to $1.0817 from $1.0834.

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AP Business Writer Stan Choe contributed.