Asian markets rise, buoyed by earnings and Wall Street rally
TOKYO — Asian stocks gained on Friday as investors cheered a strong set of retail earnings that lifted U.S. stocks.
The Japanese reference Nikkei 225 NIK,
added 0.6% in early trading. Australian S&P/ASX 200 XJO,
gained 0.9% and South Korea’s Kospi 180721,
jumped 0.8%. Hang Seng HSI from Hong Kong,
jumped 2.9%, while the Shanghai Composite SHCOMP,
increased by 0.5%. Shares rose in Singapore STI,
and Indonesia JAKIDX,
“Improving risk sentiment on Wall Street, along with earnings outperformance from Alibaba and Baidu, could help fuel some upside for the Asia region in today’s session,” Yeap Jun said. Rong, market strategist at IG in Singapore.
Alibaba BABA Shares,
and Baidu BIDU,
surged after reporting better-than-expected results, allaying some concerns about the negative impact of restrictions aimed at curbing COVID-19 infections. Both stocks continued to rise in early trading.
Assessing Japan’s economic trajectory will be on investors’ minds as manufacturing, housing and employment data for April is expected to be released next week. Some analysts expect the numbers to be weak due to a slowdown in exports to China during this period.
But a certain optimism is also in the air, with Tourist restrictions in Tokyo ease and the daily cap rising from 10,000 people entering to 20,000 from June 1. The Japanese government, led by Prime Minister Fumio Kishida, is also expected to speed up parliamentary discussions with an additional budget, another possible plus for investors.
Wall Street ended broadly higher after seven straight weeks of decline, the longest such stretch since 2001.
Bond yields have risen. The 10-year Treasury yield, which helps set mortgage interest ratesrose to 2.75% from 2.74% on Wednesday evening.
About 90% of S&P 500 stocks rose, with technology companies, banks and retailers driving much of the rally. While trading remained choppy this week, the market mostly pushed higher, unlike the past five weeks, when the S&P 500 saw declines of 2% or more on at least one day a week.
“It’s nice to see a few days in the green, and this could actually end up being the first week where we don’t have a huge day,” said Liz Young, head of investment strategy at SoFi. “But I wouldn’t declare a premature victory and assume we’re in the clear.”
The S&P 500 SPX,
rose 79.11 points, or 2%, to 4,057.84. The Dow DJIA,
added 516.91 points, or 1.6%, to 32,637.19, and the Nasdaq COMP,
rose 305.91 points, or 2.7%, to 11,740.65.
Inflation hit its highest level in four decades, and businesses raised prices for everything from food to clothing to offset rising costs. The impact of The Russian invasion of Ukraine added to inflationary pressures by fueling higher energy and major food prices. Supply chain problems worsened following China’s lockdown for several major cities as it attempted to contain COVID-19 cases.
Consumers have shown resilience on spending, but inflation pressure remains lingering and could lead to a pullback or shift in spending away from the most expensive things towards basic necessities.
Thursday’s large gains followed a late surge in markets on Wednesday, driven by details from the Federal Reserve’s latest meeting, which confirmed market expectations. more interest rate hikes.
In energy trading, US benchmark crude CLN22,
added 36 cents to $114.45 a barrel. US crude oil prices rose 3.4% on Thursday and are up more than 55% for the year. Brent crude BRNN22,
the international standard, rose 45 cents to $117.85 a barrel.
In currency trading, the US dollar USDJPY,
fell to 126.79 Japanese yen from 127.10 yen.