Australia

Australian shares are set to fall at market open, following losses in the US after inflation data posed to be higher than forecast.

ASX futures were down 0.8% or 58 points as of 8:00am on Friday, suggesting a lower open.

US stocks snapped a four-day winning streak after a report showed September consumer prices up 3.7% from a year earlier, slightly higher than forecast, while initial jobless claims were flat at 209,000, showing the labor market remains resilient.

DJIA fell 173 points to 33631, the S&P 500 lost 0.6% to 4349 and the Nasdaq dropped 0.6% to 13574.

Equity markets had risen over the last few sessions on hopes that some more tepid economic data, rising Treasury yields and increased geopolitical worries would keep the Fed from raising rates any further.

In commodity markets, Brent crude oil fell 0.6% to US$86.35 a barrel while gold was lower at US$1,868.94.

In local bond markets, the yield on Australian 2 Year government bonds was lower at 3.97% while the 10 Year yield was down at 4.37%. US Treasury notes were higher, with the 2 Year yield at 5.07% and the 10 Year yield at 4.69%.

The Australian dollar hit 63.12 US cents down from the previous close of 64.12. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was flat at 99.86.

Asia

Chinese shares ended higher after Chinese sovereign-wealth fund Central Huijin Investment boosted its stakes in China's four top lenders. Investor sentiment was likely boosted by the news as Central Huijin has in the past transformed market sentiment with strategic interventions in the secondary market, OCBC analysts say in a research note. Insurance and bank stocks led the gains. China Life Insurance rose 4.4% and Ping An Insurance put on 1.55%. Industrial & Commercial Bank of China advanced 2.5% and China Construction Bank was 2.7% higher. Software stocks fell, with iFlytek losing 2.2%. The benchmark Shanghai Composite Index ended 0.9% higher at 3107.90, the Shenzhen Composite Index rose 0.7% and the tech-heavy ChiNext Price Index gained 0.8%.

Hong Kong shares closed higher, led by the bank sector, after Chinese sovereign-wealth fund Central Huijin Investment boosted its stakes in China's four biggest banks. The move raised hopes that Beijing will step up efforts to support China's economy. The benchmark Hang Seng Index rose 1.9% to 18238.21 and the Hang Seng Tech Index was up 1.7%. Xinyi Glass Holdings led gains with an 8.2% increase, followed by Wuxi Biologics, which rose 5.8%. China Construction Bank was up 5.6%, while Industrial and Commercial Bank advanced 4.8%. Bank of China rose 4.0% and Agricultural Bank of China was up 4.5%. Meanwhile, energy stocks led losses. PetroChina lost 1.75% and CNOOC was down 1.0%.

Japan's Nikkei Stock Average rose 1.75% to close at 32494.66 on rising prospects for a Fed pause. The likelihood of a Fed pause in November has risen above 90% after the FOMC minutes were released from around 70% at the start of this week, says Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in an email. Gains on the benchmark index were led by electronics- and industrial automation-related companies such as Disco Corp., which climbed 7.3%, SMC Corp., which advanced 6.9%, and Lasertec, which added 6.3%. The 10-year JGB yield was down 2bps at 0.750%.

India stocks edged lower, dragged down by IT stocks. Investors were awaiting both U.S. and India inflation data due later. India's headline CPI is set to drop more than a whole percentage point to mid-5% from 6.8% in August, Vishnu Varathan, head of economics and strategy at Mizuho bank said in a research note. Tata Consultancy Services fell 1.9% after 2Q net profit narrowly missed analysts' estimates. Tech Mahindra lost 2.7%, while Infosys finished 1.95% lower ahead of its 2Q results after market close. Among other stocks, Bajaj Finance shed 1.0%, while HCL Technologies was off by 1.7% ahead of its 2Q results. The Sensex closed 0.1% lower at 66408.39.

Europe

European stocks rose after upbeat Asia trading and ahead of an expected higher U.S. open. The Stoxx Europe 600 gained 0.8%, and the DAX and CAC 40 advanced 0.5%, with oil and defense stocks gaining. IG futures data show the Dow opening at 33925, versus Wednesday's close of 33804. Australian and Chinese stocks made modest gains, but markets in Hong Kong, Japan and South Korea rose more than 1%. "A litany of dovish comments from Fed speakers this week on the need for caution on further rate hikes has helped to avoid any resumption of September's falls, but nerves are on the rise ahead of today's key CPI figures," IG analysts write.

The FTSE 100 rose 0.4% to 7652 points after a positive U.K. GDP report as well as rising energy stocks following an increase in oil and gas prices. The rise in oil and gas prices "has lifted BP and Shell towards the top of the FTSE 100", Victoria Scholar, head of investment at Interactive Investor said in a note. Oil firm BP and mining companies Endeavour Mining and Rio Tinto climbed 2.3%, 2.3% and 1.9%, respectively, as oil prices jumped. Home construction company Taylor Wimpey was the biggest loser, down 4.1%, "on ex-dividend day", Scholar says.

North America

US stocks snapped a four-day winning streak after a report showed September consumer prices up 3.7% from a year earlier, slightly higher than forecast, while initial jobless claims were flat at 209,000, showing the labor market remains resilient.

DJIA fell 173 points to 33631, the S&P 500 lost 0.6% to 4349 and the Nasdaq dropped 0.6% to 13574.

Equity markets had risen over the last few sessions on hopes that some more tepid economic data, rising Treasury yields and increased geopolitical worries would keep the Fed from raising rates any further.

Walgreens gained 7% after reporting a narrower quarterly loss, while Delta fell 2.3% after posting a higher quarterly profit despite fuel and labor costs headwinds.