Asian Shares Rise After Wall Street Record on Hopes for U.S. Rate Cuts

Asian stock markets rose Friday following a Wall Street record as investors awaited U.S. labor data that could strengthen expectations for Federal Reserve interest-rate cuts.

Tokyo's Nikkei 225 led regional advances, adding 0.9% to 42,945.16 after government data showed Japan's labor cash earnings rose 4.1% year-on-year in July, up from 3.1% in June, and household spending climbed 1.4% from a year earlier. The gains came as President Donald Trump implemented a U.S.-Japan trade deal with lower tariffs on Japanese car imports.

Markets across greater China and the region also moved higher. Hong Kong's Hang Seng index rose 0.5% to 25,194.85 and the Shanghai Composite gained 0.4% to 3,778.95. South Korea's Kospi edged up less than 0.1% to 3,203.13, Australia's S&P/ASX 200 climbed 0.3% to 8,855.20, India's BSE Sensex was 0.2% higher and Taiwan's Taiex jumped more than 1%. U.S. futures traded higher while oil prices edged down.

On Wall Street, the S&P 500 rose 0.8% on Thursday to reclaim its all-time high set earlier this month. The Dow Jones Industrial Average gained 350 points, or 0.8%, and the Nasdaq composite added about 1%. Stocks were supported by falling Treasury yields after several U.S. reports on the job market came in weaker than economists had expected.

Private payroll data suggested employers, excluding the government, nearly halved their hiring in August from the prior month, and initial applications for unemployment benefits rose, indicating a modest uptick in layoffs. A separate report on activity in information and other services industries, however, showed stronger-than-expected growth. None of the reports signaled a recession.

The softer labor-market signals reduced pressure in the bond market. The yield on the 10-year U.S. Treasury fell to about 4.16% from 4.22% late Wednesday. A cooling job market could bolster expectations that the Federal Reserve will cut its main interest rate at its next policy meeting in a few weeks, a move investors typically view as supportive for equities.

Commodities and currencies moved modestly. Benchmark U.S. crude fell 13 cents to $63.35 per barrel, while Brent slipped 11 cents to $66.88 per barrel. The U.S. dollar eased to 148.13 Japanese yen from 148.05, and the euro rose to $1.1672 from $1.1654.

A more comprehensive measure of the U.S. labor market for August was due Friday from the U.S. Labor Department and was expected to carry significant weight for Federal Reserve deliberations. So far this year the Fed has maintained its policy rate amid concerns that tariff-driven inflationary pressures could pick up, but a slowdown in hiring could shift the central bank's assessment of risks to the economy.

Traders and investors in Asia said regional moves reflected a combination of domestic data and global influences from the United States. Stronger Japanese income and spending readings provided additional support for Tokyo's market, while easing U.S. yields and the prospect of easier monetary policy in the months ahead buoyed sentiment across the region.

AP Business Writer Stan Choe in New York contributed to this report.