Currencies, oil, Wall Street, stock debut

SINGAPORE — Shares in the Asia-Pacific region were higher on Friday as investors weigh recession fears.

Hong Kong’s Hang Seng index jumped 1.47%, with the Hang Seng Tech index rising around 3%. SenseTime jumped 6.57% and Xpeng rose 9.21%.

Logistics company GoGoX rose as high as 23.15 Hong Kong dollars ($2.95) in its stock market debut in the city, and last traded at 22.40 Hong Kong dollars, up from the offer price of 21.50 Hong Kong dollars.

In Japan markets, the Nikkei 225 advanced nearly 1%, while the Topix climbed 0.56%.

SoftBank Group’s chief executive, Masayoshi Son, said on Friday that chip designer Arm was mostly likely to be listed on the Nasdaq, though the decision is not final, Reuters reported.

“Most of Arm’s clients are based in Silicon Valley and … stock markets in the US would love to have Arm,” Son said at the company’s annual general meeting, according to Reuters. Softbank shares rose 2.68%.

Mainland Chinese markets rose. The Shanghai Composite gained 0.44%, and the Shenzhen Component was 0.92% higher.

South Korea’s Kospi gained 1.85%, and the Kosdaq advanced 4.43%.

The S&P/ASX 200 in Australia rose 0.26%. The New Zealand market is closed for a holiday on Friday.

MSCI’s broadest index of Asia-Pacific shares was up 0.92%.

In the next three to six months, we’re going to find what it is — whether we’re going to be skirting recession, or going much deeper than that

Viktor Shvets

head of global and Asian strategy at Macquarie Capital

Markets will find greater stability when leading indicators and inflation data starts bottoming out, said Viktor Shvets, head of global and Asian strategy at Macquarie Capital.

“Right now, the markets are petrified much more of recession than they are of inflation,” he told CNBC’s “Street Signs Asia.”

“I think in the next three to six months, we’re going to find what it is — whether we’re going to be skirting recession, or going much deeper than that,” he added.

Core consumer prices in Japan rose 2.1% for the month of May compared to a year earlier, in line with estimates, according to Reuters. That’s above the Bank of Japan’s target of 2% inflation. However, consumer prices only rose 0.8% if fresh food and energy was taken out, Reuters said.

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Looking ahead, the Reserve Bank of Australia’s governor, Philip Lowe, is also set to speak on inflation later in the day.

Overnight in the US, stocks rose in a late-day rally amid recession fears. Several large banks this week raised their expectations of a recession.

The Dow Jones Industrial Average climbed 194.23 points, or 0.64%, to 30,677.36. The S&P 500 advanced 0.95% to 3,795.73, and the Nasdaq Composite gained 1.62% to 11,232.19.

Currencies and oil

The US dollar indexwhich tracks the greenback against a basket of its peers, was at 104.293.

The Japanese yen strengthened to 134.67 per dollar, recovering from the 136 levels against the greenback earlier this week. The Australian dollar was at $0.6903, having mostly been on a weakening trend this week.

The main driver for currency markets at the moment is how central banks are addressing recession risk, said Tan Teck Leng, APAC FX and macro strategist at UBS Global Wealth Management.

“We have shifted away from whoever is most hawkish and therefore supporting the currency, to a situation where the market is worried about overtightening and potential recession risk that is weighing on currency markets,” he told CNBC’s “Street Signs Asia.”

Oil futures were little changed after rising earlier in Asia trade. US crude futures gained 0.1% to $104.37per barrel, while international benchmark Brent crude shed 0.12% to $109.92 per barrel.