In Asian Equity Markets indices were mixed Friday morning. In mainland China, the Shanghai composite rose 0.21% in early trade, while the Shenzhen component edged up 0.13%. Over in Hong Kong, the Hang Seng index was in positive territory, adding 0.14%. Japan’s Nikkei 225 rose 0.32%, while its Topix index added 0.30%. South Korea’s Kospi lost 0.15%. Tensions between Japan and South Korea escalated on Thursday. South Korean defense stocks rose in response. Victek jumped 8.49% in early trade before paring gains to rise 2.38%, while Firstec rose 1%

In Currency Markets the U.S. dollar held firm in Asia on Friday on expectations Federal Reserve Chairman Jerome Powell will, in a pivotal speech, stick with his message that the U.S. central bank has not entered a prolonged monetary easing cycle. The greenback hit another 11-year high versus the Chinese yuan on Friday. The New Zealand dollar jumped from a three and-a-half-year low after the Pacific nation’s central bank chief said he was “pleased” with where interest rates were, hosing down expectations of more immediate rate cuts to follow this month’s aggressive easing.

In Commodities Markets oil prices clawed back the previous day’s losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on U.S. monetary policy. Brent crude rose 10 cents to $60.02 a barrel, while U.S. crude futures were at $55.38 a barrel, up 3 cents. Oil prices are down for nearly two straight months after the IEA and the OPEC cut demand growth forecasts as a simmering U.S.-China trade war hit global economic growth.

In US Equity Markets indices ended little changed on Thursday as a fall in U.S. jobless claims offset data showing a contraction in U.S. manufacturing activity while investors awaited Federal Reserve Chair Jerome Powell’s speech on Friday. Shares of Nordstrom Inc jumped 15.9%, the biggest percentage gain on the S&P 500, after the department store’s quarterly profit beat estimates, joining Target Corp and Lowe’s Cos Inc in delivering upbeat retail numbers. Boeing Co shares rose 4.2% as Reuters reported the planemaker is looking to increase production of its grounded 737 MAX jets.

In Bond Markets Treasury yields rose on Thursday after two Federal Reserve officials said they saw no reason to cut interest rates without new economic deterioration, a day after Fed meeting minutes showed policymakers disagreed on the U.S. central bank’s rate cut last month. The 2-year, 10-year yield curve inverted last week for the first time since 2007, a signal that a recession is likely in one to two years. The curve moved in and out of inversion on Wednesday and Thursday. Benchmark 10-year notes fell 6/32 in price to yield 1.598%, up from 1.577% late on Wednesday.