Asian Shares Mixed Despite Fading Fed Hike Bets

(RTTNews) - Asian stocks ended mixed on Friday, even as signs of slowing U.S. inflation and a retreat in oil prices raised optimism that the U.S. Federal Reserve would hold interest rates steady next month.

The U.S. dollar was subdued in Asian trade ahead of retail sales and consumer sentiment readings due later in the day. Gold dipped to $4,335 an ounce but was on track for a second weekly gain on eased concerns over Federal Reserve rate path.

Brent crude futures surged above $88 a barrel, recovering losses from the previous session as talks to end the Middle East conflict and reopen the Strait of Hormuz remained deadlocked.

China's Shanghai Composite index fluctuated before finishing marginally higher at 3,927.18. Hong Kong's Hang Seng index fell 1.10 percent to 25,116.85, hitting a three-week low and marking its fourth consecutive session of losses.

Japanese markets rose notably while the yen held steady despite reports suggesting that the Bank of Japan is eying a September rate hike and could move more aggressively with subsequent increases to stem the currency's falls.

Prime Minister Sanae Takaichi's government was said to support an interest-rate hike. The Nikkei average climbed 0.59 percent to 68,713.80 while the broader Topix index rose 0.51 percent to 4,197.20.

SoftBank Group shares rose 2.9 percent and Kioxia Holdings surged 3.8 percent amid expectations that AI data center demand will fuel a multi-year chip shortage.

Seoul stocks ended sharply higher for a fifth consecutive session, with technology stocks leading the surge on renewed optimism over AI spending.