Stock Index

Asian equities advanced on Friday in line with a global rally as investors awaited key U.S. jobs data. Comments from Federal Reserve Governor Christopher Waller helped ease rate-hike concerns, pulling U.S. Treasury yields and the dollar lower, according to Reuters. The yen strengthened 2.6% for the week to around 155.7 per dollar, while markets trimmed the implied probability of a rate increase at this month’s meeting to 50% from about 63%.

Fed Governor Christopher Waller said he would support keeping rates steady if data show inflation pressures are easing. After his remarks, markets cut the implied chance of a September rate hike to 50.4% from 63.2%. Economic data were broadly upbeat, with jobless claims low and the services sector accelerating. The Dow closed up 624.16 points, or 1.18%, at 53,686.11.

Nvidia said it would buy the artificial intelligence platform Hugging Face for $US13 billion ($18 billion), sending its shares up 1.8%. Hewlett Packard Enterprise posted quarterly results that beat analysts’ estimates. The company also raised guidance for cloud and AI demand, pointing to sustained strength in AI infrastructure spending.

James Hardie Industries reported a 64% year-on-year increase in first-quarter FY27 sales to US$1.47 billion, while adjusted EBITDA rose 79% to US$422 million. Management also upgraded its full-year guidance, forecasting proforma adjusted EBITDA growth of 7.4% to 13.7%. Morgan Stanley expects the company’s earnings in 2029 could be about 19% above current market expectations.

Indian market sentiment improved as U.S. bond yields eased slightly and the rupee strengthened to a two-month high against the dollar. A concessional swap facility mobilised $136 billion, while the FCNR(B) scheme drew $127 billion, both above expectations, supporting rupee stability and foreign investor confidence. Banks’ large FCNR(B) mobilisation is expected to lift net interest margins, underpinning banking stocks, while foreign institutional investors are seen continuing to buy Indian equities.

BHP, Woolworths and Coles, all members of the ASX 200, raised dividends during this reporting season. BHP’s final dividend increased by about 51.5% year on year to US$0.99 per share, taking its full-year payout to a four-year high. The company said FY26 revenue rose 15% to US$58.8 billion and underlying profit jumped 30% to US$13.2 billion, supported by higher prices for copper, iron ore and metallurgical coal.

Heavy bond issuance by US tech giants, combined with escalating tension around the Strait of Hormuz, is adding upward pressure on global borrowing costs. So far this year, “hyperscalers” such as Google, Amazon and Meta have issued more than $219bn in bonds—more than double the year-ago pace—and some expect full-year issuance to reach $400$500bn. At the same time, a US-Iran military standoff is lifting energy prices and inflation expectations, leaving markets to price in a longer period of higher interest rates.

Indian equities ended lower, with the Sensex down 0.49% and the Nifty off 0.59%. Brent crude rose 1% to USD 95.4 a barrel after the US said it launched overnight airstrikes against targets in Iran. Auto stocks led the declines, with Hero MotoCorp down 6% and Eicher Motors down 5%. The rupee was little changed near 94.97, helped by central bank intervention.

Stoxx said the Euro Stoxx 50 index will change its constituents, with Engie and Nokia set to replace Volkswagen (VW) and Prosus. The adjustment is expected to prompt passive funds that track the index to rebalance their positions.

Foreign institutional investors were net buyers of Indian equities on September 1, with net purchases of Rs 1,143 crore, while domestic institutional investors bought a net Rs 1,847 crore. The Nifty 50 slipped 0.1% to 24055.80 and the Sensex eased 0.02% to 76944.28. Brent crude rose above $92 a barrel and higher global bond yields weighed on risk appetite amid renewed USIran tensions. India’s Q1 GDP growth of 7.8% offered some support, though crude prices, geopolitics and foreign flows remained key drivers.