Australia

Australian shares were leaning lower Saturday morning following a poor end to the week on Wall Street. Investors continued to fret over the high-stakes debt ceiling negotiations between US congressional leaders and President Biden.

ASX futures were hinting down as of 6:00am on Saturday, suggesting a slightly lower open.

US stocks closed lower Friday as investors parsed fresh comments from Federal Reserve Chair Jerome Powell and updates on debt ceiling negotiations, which have paused.

The S&P 500 lost 0.1%, the Nasdaq Composite shed 0.2% and the Dow Jones Industrial Average dipped 0.3%.

Fed Chair Powell, speaking Friday, said banking system stress could influence the Fed's thinking on interest rate increases. Fed officials have indicated that the decision regarding whether to pause or continue raising rates in June could be a close call.

In commodity markets, Brent crude oil shed 0.2% to US$75.71 a barrel while gold increased 0.9% to US$1,975.75.

Australian government bonds increased, with the 2 Year yield moving up to 3.49% and the 10 Year yield rising to 3.59%. US Treasury notes also gained, with the 2 Year yield increasing to 4.30% and the 10 Year yield climbing to 3.70%.

The Australian dollar increased to 66.50 US cents after previously closing at 66.20. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, leaned lower to 97.12.

Asia

Chinese shares ended mixed, extending their recent range-bound pattern. Investors weighed China's weak April economic data against optimism over possible easing by the People’s Bank of China. Media and financial stocks led Friday’s losses. Focus Media Information Technology dropped 1.8%, retreating from previous gains on chatbot-related buying. China International Capital Corp. declined 3% after local reports that authorities could lower brokers' commission rates charged on mutual funds. Among gainers were chip makers and pharmaceutical companies. Will Semiconductor added 2.4% and Shenzhen Mindray Bio-Medical Electronics rose 1.2%. The Shanghai Composite Index ended 0.4% lower at 3283.54 and finished the week 0.3% higher. The Shenzhen Composite Index edged up 0.1% and the ChiNext Price Index ended flat.

Hong Kong shares ended lower, weighed by the yuan's depreciation against the US dollar after China's economic recovery showed signs of losing steam. The Hang Seng Index dropped 1.4% to 19450.57. Most shares were lower, with technology companies leading losses. The Hang Seng Tech Index fell 2.4%, with Alibaba Group Holding retreating 6.0%, JD.com declining 4.7% and Baidu down 4.5%. Energy stocks were among gainers. China Resources Beer gained 1.5% and Budweiser Brewing rose 2.0%.

The Nikkei Stock Average of Japan ended 0.8% higher at 30808.35, its highest close since August 1990. Electronics stocks led the day's gains as optimism continued for progress of US debt ceiling negotiations. Toshiba Tec surged 10% and Ricoh Co. gained 7.7% following media reports that they plan to set up a joint venture to develop and produce office printers. The companies announced the plan after market close.

Indian shares ended higher, recovering from a multi-day losing streak, amid broad gains in Asian equities. Analysts said the market has been confronted with a mixed bag of signals, as investors weigh the positive progress on US debt ceiling talks against continued worries over the risk of global recession. The Sensex index rose 0.5% to settle at 61729.68. Auto makers, IT-services providers and financial stocks all picked up after their recent weakness. Tata Motor grew 3.2%, Tech Mahindra climbed 2.3% and Axis Bank was up 1.1%.

Europe

European stocks rose amid hopes for a deal to avoid a US government debt default and following improved UK consumer confidence data. The pan-European Stoxx Europe 600 rose 0.8%, the German DAX gained 0.7% and the French CAC 40 added 0.6%.

"It would appear we're heading into the weekend on a slightly more upbeat note, with stock markets posting decent gains, optimism rising over debt ceiling negotiations, and UK consumers feeling a little less downbeat on their prospects," Oanda analyst Craig Erlam wrote. US House Speaker Kevin McCarthy said Thursday he saw a path to an agreement to raise the debt ceiling while Gfk said Friday its UK consumer confidence index rose for the fourth consecutive month in May.

The United Kingdom’s FTSE 100 Index rose 0.2% amid gains for oil and mining stocks following mostly upbeat trading in Asia. BP and Shell advanced. Anglo American, Antofagasta, Rio Tinto and Glencore also climbed following overnight gains for markets in Australia, mainland China and Japan. Smiths Group rose 0.7% after the industrial conglomerate raised full-year revenue guidance.

North America

US stocks closed lower Friday as investors parsed fresh comments from Federal Reserve Chair Jerome Powell and updates on debt ceiling negotiations, which have paused.

The S&P 500 lost 0.1%, the Nasdaq Composite shed 0.2% and the Dow Jones Industrial Average dipped 0.3%.

Fed Chair Powell, speaking Friday, said banking system stress could influence the Fed's thinking on interest rate increases. Fed officials have indicated that the decision regarding whether to pause or continue raising rates in June could be a close call.

Traders reduced their bets that the Fed could raise rates again in June. Markets are now reflecting roughly one-in-eight odds of a June hike, down from one-in-three on Thursday.

Among individual stocks, Foot Locker plunged 27.2% after the retailer slashed its outlook for the year amid falling sales.