Hong Kong Rallies Despite Flat Day for Asia Stocks: Markets Wrap.

Hong Kong shares rallied on Friday, outperforming the rest of Asia's equities as traders reevaluated the future of interest rates. The Hang Seng Index opened higher and is on track to close at its highest level since August. Alibaba, Baidu, and JD.com all saw gains. In other parts of Asia, Japanese stocks recovered slightly, while Australian and South Korean equities fell. The yen weakened against the dollar after the Bank of Japan left bond buying amounts unchanged. Treasuries remained stable, while Australian and New Zealand yields rose. Federal Reserve rate cut expectations in the swaps market were repriced, with only one cut fully priced in this year. In China, both used-home and new-home sales declined in April at a faster pace than the previous month. Three Federal Reserve officials suggested that borrowing costs should remain high for longer as they wait for evidence of easing inflation. Jamie Dimon expressed concern about inflation and suggested that interest rates may be higher for longer. In terms of upcoming data releases, China's retail sales and industrial production, Malaysia and Hong Kong's GDP, and Singapore's exports are all expected. Commodities, including West Texas Intermediate and gold, experienced slight fluctuations. Bitcoin traded above $65,000. [Extracted from the article]

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