(Bloomberg) — European stocks edged higher in subdued holiday trading, tracking gains in Asia amid a rally in Japanese exporters that benefited from the yen’s recent weakness.
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The Stoxx Europe 600 index rose about 0.2% as trading resumed after a two-day break, with banks and healthcare stocks leading the advance. Delivery Hero SE shares plunged after Taiwan’s anti-trust regulator vetoed the sale of its Foodpanda business to Uber Technologies Inc.
US equity futures declined after Thursday’s muted session on Wall Street. Treasury yields and the dollar were steady.
The MSCI Asia Pacific index climbed for the fifth straight day, its longest such streak since July. Shares in Tokyo jumped after the yen dropped to a five-month low of 158 per dollar in the previous session, following Bank of Japan Governor Kazuo Ueda’s comments Wednesday that avoided giving a clear signal on interest rates next month.
The Japanese currency rebounded slightly Friday, after Finance Minister Katsunobu Kato said the government will take appropriate steps against excessive movements in the foreign exchange market. Data released Friday also showed inflation in Tokyo accelerated for a second month, with retail sales also beating estimates.
Japan’s latest economic performance suggests the need for the BOJ to keep considering tightening policy in the coming months. A summary of opinions from the central bank’s December meeting showed mixed views among its board members on the timing of another rate hike partly due to uncertainties over the US economy.
Elsewhere in Asia, Hong Kong and mainland Chinese shares fluctuated. Equities rose in Australia, with their South Korean counterparts declining as the country’s political turmoil continued.
“I think investors will continue to tread cautiously around Asian stocks going into 2025,” said Xin-Yao Ng, an investment director at abrdn. “I’m wishing Trump announces his tariff sooner rather than later because besides the direct impact on trades, there’s a lot of indirect impact like on inflation.”
The S&P 500 ended Thursday flat, while the tech-heavy Nasdaq 100 fell 0.1% in quiet post-holiday session as mixed jobless claims data did little to alter bets on the Federal Reserve outlook.
Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it’s taking longer for out-of-work people to find a job. Initial claims, meanwhile, ticked down to 219,000 in the week ended Dec. 21.