The Fearless Girl statue outside the New York Stock Exchange (NYSE) in New York, US, on Tuesday, Aug. 27, 2024. (Photo: Jeenah Moon/Bloomberg via Getty Images) 
Shares in China led the advance, with sentiment boosted by a slew of upbeat earnings and a rebound in stocks of electric vehicle makers. Equities in Australia, Hong Kong and Japan rose, as did US futures, before publication of the Federal Reserve’s preferred inflation gauge later in the day.
Japan’s 10-year bond yield edged higher after data showed price pressures in Tokyo quickened in August, backing the case for a further normalisation of monetary policy. The yen was on track to halt a two-day drop, while Treasuries were poised for a fourth straight monthly gain.
Bets for a Fed rate cut continue to dominate global markets, after data showed that the central bank has managed to tame inflation without the economy tumbling into recession. US output grew at a slightly stronger pace in the second quarter than initially reported, reflecting an upward revision to consumer spending that more than offset weaker activity in other categories.
“The US economy looks like it’s moving from very strong to strong,” said Thomas Taw, BlackRock’s head of APAC investment strategy, told Bloomberg TV. “The data will continue to weaken, but you kind of have to marry that off with how much inflation is going to weaken in the US.”
The Bloomberg Dollar Spot Index was little changed, though gains earlier this week meant it is set to end up for the first week in five.
Aside from the core PCE data due later in the session, the big focus for financial markets will be next week’s US employment data. Nonfarm payrolls figures on 6 September will be scrutinised for clues as to whether the Fed will cut rates in September, after Chair Jerome Powell opened the door to easing at his Jackson Hole speech earlier this month.
US interest rate cuts are likely to have knock-on effects for central banks across Asia, with analysts expecting authorities in Indonesia and India to lower borrowing costs.
“The soothing Jackson Hole dovish messages continue to resonate, while focus turns to the US employment report to assess if a soft landing remains on track,” Barclays Plc analysts including Gabriel Casillas wrote in a note.
Meanwhile, shares of WuXi AppTec and WuXi Biologics are in focus as House Republican leaders plan votes early next month on a series of measures targeting Chinese companies. On the earnings front, Bank of China reported declines in first-half net income and commissions.
In the commodities space, gold held near a record high and oil steadied after jumping on Thursday on positive US economic data and worsening supply disruptions in Libya. Iron ore slipped after rallying by about 10% in 10 days to breach $100 a ton.