Asian stock markets opened Friday on a down note as the recent global equity rally appeared to lose momentum. Major indices in South Korea and Japan slid at the start of trading, even as global equities largely held steady.
After a strong rebound earlier this week — driven partly by hopes of interest-rate cuts from the Federal Reserve — markets are showing signs of fatigue. Asian investors remain cautious as some of the earlier optimism fades.
Particularly under watch is the currency and interest-rate outlook in Japan, where inflation remains sticky and speculation is rising that the Bank of Japan may hike rates sooner than anticipated — a factor weighing on regional sentiment.
Given this backdrop, market participants seem to be trimming positions, reflecting uncertainty over whether the recent rally has legs, or was just a short-lived bounce.
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