Australia

Australian shares are expected to move up this morning despite a poor Friday on Wall Street. Worries about a potential federal default and a slowing economy dragged US indices lower.

ASX futures were hinting higher as of Saturday at 6:00am, having gained 8 points or 0.1%.

US stocks fell on Friday, extending their losses for a second consecutive week. Fed officials hinted further rate increases may be needed to fight inflation, although data suggests the economy is beginning to cool off. Anxiety surrounding the federal debt limit also contributed to a downbeat sentiment.

The S&P 500 declined 0.2%, while the Nasdaq Composite lost 0.4% and the Dow Jones was little changed.

In commodity markets, Brent crude oil shed 1.0% to US$74.21 a barrel while gold dipped 0.2% to US$2,011.14.

Australian government bonds closed lower, with the 2 Year yield falling to 3.16% and the 10 Year yield declining to 3.32%. US Treasury notes ended higher, with the 2 Year yield moving up to 3.99% and the 10 Year yield rising to 3.46%.

The Australian dollar declined to 66.43 US cents from its previous close of 67.00. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, inched up to 96.61.

Asia

Chinese shares ended Friday lower, as the market remained under pressure amid rising investor concerns over the country's post-reopening rebound momentum. The benchmark Shanghai Composite Index shed 1.1% to settle at 3272.36. The Shenzhen Composite Index and the tech-heavy ChiNext Price Index both dropped 1.1% as well. Cinema operators led losses, as the sector continued to pull back from a rally earlier this week. Guangzhou Jinyi Media shed 7.2% and China Film slumped 9.4%. Digital media companies also weighed on the market, with online television production and streaming company Mango Excellent Media falling 4.9%.

Hong Kong stocks ended lower for the fourth straight day. The benchmark Hang Seng Index lost 0.6% to settle at 19627.24. The continued weakness followed the release of Chinese data late Thursday, which showed softer-than-expected private sector financing activities. Losses were spread across sectors and industries. Aluminum products maker China Hongqiao fell 6.9%, solar equipment producer Xinyi Solar dropped 3.3% and property management company Country Garden Services shed 3.2%.

Japan's Nikkei Stock Average rose 0.9% to close at 29388.30 amid rising hopes for a more dovish Federal Reserve. These hopes increased as US initial jobless claims climbed in April and producer prices rose at a slower-than-expected pace, OCBC Treasury Research said in a note. Among top performers, Nippon Sanso advanced 8.8% and Sumitomo Realty & Development rose 8.1%. Nissan Motor added 5.3% after its Q4 net profit rose sharply and beat analysts' expectations. Meanwhile, SoftBank Group fell 3.7% after it posted a fiscal-year net loss.

India's benchmark Sensex index closed 0.2% higher at 62027.90. Investors are likely to remain watchful as they continue to assess quarterly earnings from Indian corporates, ICICI Direct Research analysts said in a note. Gainers included Mahindra & Mahindra, which rose 1.9%, IndusInd Bank, which gained 1.8%, and Axis Bank, which was 1.7% higher. Decliners included Adani Total Gas, which fell 4.3% and Adani Transmission, which declined 3.5% on news that MSCI will remove both companies from its indices at the end of May.

Europe

European stocks rose Friday as investors brushed off concerns about slowing global demand. The pan-European Stoxx Europe 600 advanced 0.4% while the French CAC 40 and the German DAX both gained 0.5%.

The United Kingdom’s FTSE 100 closed up 0.3%, ending the week with modest gains. "It's been a softish and subdued week for equity markets, with concerns about slowing global demand appearing to weigh on risk sentiment more broadly," CMC Markets analyst Michael Hewson wrote in a note. Insurer Beazley led the British index higher after it posted an increase in gross premiums written in the first quarter and said it remains confident in its full-year guidance. Airtel Africa also moved up, after worse-than-expected 2023 performance weighed on shares Thursday.

North America

US stocks fell on Friday, extending their losses for a second consecutive week. Fed officials hinted further rate increases may be needed to fight inflation, although data suggests the economy is beginning to cool off. Anxiety surrounding the federal debt limit also contributed to a downbeat sentiment.

The S&P 500 declined 0.2%, while the Nasdaq Composite lost 0.4% and the Dow Jones was little changed.

The University of Michigan's consumer-sentiment index fell to a six-month low of 57.7, adding to worries that consumers may pull back on spending. The congressional Budget Office said the US government faces a significant risk that it won't be able to pay all its bills in June unless the borrowing limit is increased.

Shares of regional banks continued to lose, with PacWest falling 3.0%, PNC shedding 1.0% and Zions Bancorp down 1.1%.