World shares mostly advance after Wall Street inches closer to its all-time high

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

The future for S&P 500 rose 0.2% while that for the Dow Jones Industrial Average was unchanged.

In early European trading, Germany's DAX added 0.5% to 23,996.47. In Paris, the CAC 40 rose 0.2% to 8,135.57 while Britain's FTSE 100 edged 0.1% higher to 9,729.82.

In Asia, Japan’s Nikkei 225 trimmed gains from the previous day, shedding 1.1% to 50,491.87. 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 2.4% and chip maker Tokyo Electron falling 2%.

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 recovered from morning losses, adding 0.6% to 26,085.08, while the Shanghai Composite index rose nearly 0.7% to 3,902.81. Still, traders remained 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 1.8% to 4,100.05. Among gainers were LG Electronics, which rose 5.2%, and Hyundai Motors, which soared 11.1%.

In Australia, the S&P/ASX200 edged up 0.2% to 8,634.60. Taiwan's Taiex rose nearly 0.7%

India's Sensex advanced 0.5% 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% and was just 0.5% below its all-time high. The Dow Jones Industrial Average dipped 0.1% and the Nasdaq composite rose 0.2%.

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.

In other dealings early Friday, U.S. benchmark crude shed 7 cents to $59.60 per barrel. Brent crude, the international standard, gave up 1 cent to $63.25 per barrel.

The U.S. dollar fell to 154.91 Japanese yen from 155.12 yen. The euro climbed to $1.1652 from $1.1645.