Asian shares are mixed after Wall Street inches closer to its all-time high

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MANILA, Philippines (AP) — Asian shares were mixed on Friday after the U.S. stock market held near its records in a quiet day of trading.

U.S. futures were higher while oil prices fell.

Japan’s Nikkei 225 trimmed gains from the previous day, shedding 1.2% to 50,408.70. Government data showed household spending in Japan fell 3.0% year-on-year in October, below market expectation for a light increase and the sharpest drop since January 2024.

Technology shares declined, with computer chip testing equipment maker Advantest Corp. down nearly 2.3% and chip maker Tokyo Electron falling 2.8%.

Traders were acting cautiously ahead of a key U.S. inflation report that could influence Federal Reserve policy. On Thursday, expectations for a coming Fed cut took a slight hit after reports suggested the job market may be in better shape than expected and does not need much help from lower interest rates.

In Chinese markets, Hong Kong’s Hang Seng index slid 0.1% to 25,921.69, while the Shanghai Composite index rose 0.1% to 3,877.83, as traders turned cautious ahead of key data from China next week including inflation, trade and producer prices. Investors are also awaiting policy signals from high-level economic meetings in China.

South Korea’s Kospi index rose 1.1% to 4,074.00. Among gainers were LG Electronics, which rose 5.6%, and Hyundai Motors, which added 7.2%.

In Australia, the S&P/ASX200 edged up less than 0.1% to 8,623.40. Taiwan's Taiex was nearly unchanged.

India's Sensex edged 0.1% higher after the Reserve Bank cut its repo rate to 5.25% from 5.5%, citing weak price pressures and expectations for slowing economic growth.

On Thursday, the U.S. stock market continued its relatively calm run following weeks of sharp and scary swings.

The S&P 500 inched up by 0.1% to 6,857.12 and is just 0.5% below its all-time high. The Dow Jones Industrial Average dipped 0.1% to 47,850.94. The Nasdaq composite rose 0.2% to 23,505.14.

Dollar General helped lead the market and rallied 14% after reporting a stronger profit for the latest quarter than analysts expected. More customers shopped at its stores, and it also squeezed more profit out of each $1 in sales that it made.

Besides worries about potential overinvestment in AI, concerns about what the Federal Reserve will do with interest rates sent the S&P 500 on sharp swings after it set its all-time high in late October.

Investors generally expect the Fed to cut its main interest rate next week in hopes of shoring up the slowing U.S. jobs market. If it does, that would be the third such cut this year.

Investors love lower interest rates because they boost prices for investments and can rev up the economy. The downside is that they can worsen inflation, which remains stubbornly above the Fed’s 2% target.

Expectations for a coming cut to rates took a very slight hit after reports suggested the U.S. job market may be a bit better than expected.

One report said fewer U.S. workers filed for unemployment last week. The number was the lowest in more than three years.

A separate report said that the number of layoffs announced last month fell by more than half from October’s surge.

While better-than-expected data on layoffs is good news for U.S. workers, it could also indicate the job market doesn’t need as much help from lower interest rates.

In other dealings on Friday, U.S. benchmark crude shed 17 cents to $59.50 per barrel. Brent crude, the international standard, slipped 11 cents to $63.15 per barrel.

The U.S. dollar fell to 154.77 Japanese yen from 155.12 yen. The euro edged slightly higher to $1.1657 from $1.1645.

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AP Business Writers Stan Choe and Matt Ott contributed.