Shares also climbed in Japan, where companies’ profits rose 11.6% on annual basis in the second quarter.
China’s central bank reduced the foreign exchange reserve requirement ratio for financial institutions in a bid to support the yuan. The currency strengthened and led gains among Asian peers against the greenback. Investors also welcomed moves by the government to allow the nation’s largest cities to cut down payments for home buyers and encouraged lenders to lower rates on existing mortgages as well as on deposits. Bank of China Ltd followed through by lowering deposit rates on Friday.
Futures for the S&P 500 were little changed after the index closed lower on Thursday to notch its first monthly slide since February. The Fed’s preferred measure of underlying inflation saw the smallest back-to-back increases since late 2020, encouraging consumer spending. Markets took the report in stride, with the numbers illustrating the divergence within the US economy, according to Jeffrey Roach at LPL Financial.