Asian Stocks Rise on Wall Street Momentum
Asian equity markets moved higher on Friday, supported by record highs on Wall Street, while investors remained cautious amid ongoing tensions between the U.S. and Iran.
Trading activity was relatively light, as several key markets—including China, Hong Kong, Singapore, and India—were closed for public holidays, leading to reduced liquidity across the region.
Strong U.S. Session Lifts Sentiment
Regional markets took direction from a robust U.S. trading session, where both the S&P 500 and Nasdaq Composite reached new all-time highs. The rally was driven by strong corporate earnings and a decline in oil prices, which eased inflation concerns.
After the closing bell, Apple Inc. reported better-than-expected quarterly results, further boosting sentiment in the technology sector.
Geopolitical Risks Limit Upside
Despite gains, market optimism remained restrained due to rising geopolitical uncertainty. Reports indicated that Donald Trump is set to review potential military strategies involving Iran, raising fears of further escalation.
Iran has warned that any new U.S. military action would result in “long and painful strikes” targeting American positions in the region.
The Strait of Hormuz, a key route for global oil shipments, remains largely disrupted, tightening supply expectations and adding to market uncertainty.
Japan Markets Mixed as Risks Persist
Japan’s Nikkei 225 rose 0.6%, while the broader TOPIX index remained flat. Gains were limited by the ongoing geopolitical backdrop, which continues to weigh on investor sentiment.
Oil Price Volatility Adds Pressure
Oil markets have seen heightened volatility, with Brent crude briefly surging above $126 per barrel—its highest level in four years—before retreating later in the session as traders took profits.
Asian Markets Posted Strong April Gains
Despite recent caution, Asian equities recorded strong gains in April, driven by optimism around artificial intelligence growth and easing concerns during a temporary U.S.-Iran ceasefire.
South Korea’s KOSPI surged over 30%, while Japan’s Nikkei 225 gained more than 15%. China’s Shanghai Composite rose nearly 6%, and India’s Nifty 50 advanced 7.5% during the month.
Tokyo Inflation Remains Below BOJ Target
Tokyo’s inflation data for April showed modest price growth, with underlying inflation pressures continuing to soften. This kept inflation below the target set by the Bank of Japan, highlighting fragile demand conditions.
Headline inflation in Tokyo rose 1.5% year-on-year, slightly up from 1.4% in March. Core CPI, which excludes fresh food, also stood at 1.5%, down from 1.7% and below market expectations of 1.8%.
The Bank of Japan recently maintained interest rates but signaled a more hawkish stance, with markets now considering the possibility of a rate hike as early as June.
Australia Stocks Gain on Retail Strength
Australia’s S&P/ASX 200 climbed 0.9%, supported by strong corporate updates. Coles Group reported a 3.1% increase in third-quarter sales, driven by solid supermarket performance and growing e-commerce demand, although weakness in its liquor division persisted.
