The Japan Times - US stocks rise on Black Friday

The yen rallied against the dollar as higher inflation in Japan fuelled expectations that the central bank will hike interest rates again.

Traders are closing out a rollercoaster month for assets caused largely by Trump winning a second US presidential election -- and also a result of the wars in Ukraine and Gaza.

Markets are tracking in particular developments surrounding Trump's pledge to hammer China, Canada and Mexico with hefty tariffs on his first day in office in January.

US stock markets opened higher as traders returned from the Thanksgiving break for a half-day session.

"With many US investors still out after being off for Thanksgiving yesterday, the key theme that has emerged in the last few days is the easing of tariff fears," said Fawad Razaqzada, market analyst at City Index and Forex.com.

This came after a phone call between Trump and Mexican President Claudia Sheinbaum, who afterwards said: "There will not be a potential tariff war."

The focus was also on shoppers seeking bargains on Black Friday, a crucial day for retailers around the world.

- Eurozone inflation rises -

Investors in Europe, meanwhile, digested data showing eurozone inflation accelerated again in November, as well as France's ongoing political standoff.

Paris was flat in afternoon deals, London fell and Frankfurt rose while the euro fell slightly against the dollar.

Year-on-year consumer price increases reached 2.3 percent, the EU's official data agency said, continuing to bounce back from a three-year low of 1.7 percent in September.

Analysts said the latest reading was not expected to deter the European Central Bank from cutting interest rates next month as it focuses on addressing Europe's sluggish growth.

Investors have monitored uncertainty over budget cuts to reduce France's huge deficit, as Prime Minister Michel Barnier's government struggles amid tough opposition from the right and left.

- Yen rally -

In Asia on Friday, forecast-busting consumer prices out of Tokyo boosted talk of another Japanese interest-rate hike next month, in turn sending the yen strengthening one percent against the dollar.

Consumer prices in Tokyo -- seen as a bellwether for Japan as a whole -- jumped to 2.6 percent in November, well up from October and much more than expected.

The Bank of Japan has hiked interest rates twice this year, while the yen was being supported also by forecasts that the Federal Reserve will lower US rates at its December meeting.

The stronger yen Friday weighed on Japanese exporters, causing the Tokyo stock market to close lower.

Hong Kong and Shanghai gained after Chinese authorities held a meeting to discuss plans to boost stunted consumption in China -- a key goal for Beijing as it looks to kickstart the world's number two economy.

- Key figures around 1500 GMT -

New York - Dow: UP 0.2 percent at 44,829.13 points

New York - S&P 500: UP 0.3 percent at 6,017.81

New York - Nasdaq: UP 0.5 percent at 19,153.88

London - FTSE 100: DOWN 0.3 percent at 8,259.73

Paris - CAC 40: FLAT at 7,183.07

Frankfurt - DAX: UP 0.4 percent at 19,502.25

Tokyo - Nikkei 225: DOWN 0.4 percent at 38,208.03 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent at 19,423.61 (close)

Shanghai - Composite: UP 0.9 percent at 3,326.46 (close)

Dollar/yen: DOWN at 149.99 yen from 151.51 yen on Thursday

Euro/dollar: DOWN at $1.0550 from $1.0552

Pound/dollar: UP at $1.2691 from $1.2687

Euro/pound: DOWN at 83.14 from 83.18 pence

West Texas Intermediate: UP 1.0 percent at $69.38 per barrel

Brent North Sea Crude: UP 0.4 percent at $73.07 per barrel

T.Ueda--JT