Asian Stock Markets Today: Asian stock markets staged a notable recovery on Friday, driven by positive corporate earnings and a slight moderation in oil price volatility amid ongoing geopolitical tensions in West Asia.
Investors welcomed better-than-expected results from major companies, particularly in the technology sector. Apple Inc. reported quarterly results that surpassed Wall Street estimates and provided an optimistic sales outlook for the upcoming period, despite flagging potential disruptions in chip supplies. The company’s shares rose about 2.7 percent in extended trading.
This positive momentum spilled over to other heavyweights. Caterpillar and Alphabet (Google’s parent) both jumped around 10 percent after delivering earnings that exceeded market expectations.
In the United States, expectations of sustained profit growth lifted major indices. The S&P 500 gained more than 10 percent for the entire month of April, while the Nasdaq recorded its best monthly performance since 2020, rising nearly 15 percent. On Friday, S&P 500 futures were up 0.2 percent and Nasdaq futures gained 0.1 percent.
April also proved highly rewarding for Asian markets. Japan’s Nikkei 225 surged 16 percent during the month, Taiwan’s benchmark rose 23 percent, and South Korea’s Kospi advanced nearly 31 percent, reflecting strong risk appetite among regional investors.
Oil Prices Remain Elevated Amid Iran Tensions
Oil prices continued to trade at elevated levels. Brent crude rose 1.2 percent to $111.70 per barrel on Friday, though it stayed well below Thursday’s four-year high of $126.41. US West Texas Intermediate crude increased 0.5 percent to $105.64 per barrel.
The price movement followed fresh statements from Iranian officials. On Thursday, Iran warned that any renewed US attacks would trigger “long and painful strikes” on American targets. Tehran also reiterated its control over the Strait of Hormuz.
Yen Stabilises After Japanese Intervention
The currency market saw renewed activity after reports that Japanese authorities intervened on Thursday by selling dollars to buy yen. This marked Japan’s first such intervention in two years. The dollar initially dropped sharply against the yen, falling nearly five yen to a two-month low of 155.50. However, buyers returned on Friday, pushing the dollar-yen pair back to 157.29.
Analysts noted that while the intervention provided temporary support to the yen, Tokyo may need further action if it aims to defend the 160 level firmly. Japan, being a major oil importer, faces increasing trade deficit pressure due to elevated crude oil prices.
The euro strengthened indirectly to $1.1729, moving away from a three-week low of $1.1655. The British pound climbed to a 10-week high of $1.3612, supported by hawkish comments from the Bank of England and the European Central Bank.
The Bank of England warned that prolonged high energy prices due to the Iran conflict could lead to a “significant” rise in interest rates, with one board member already voting for an immediate hike. European Central Bank President Christine Lagarde indicated that the bank is actively debating rate increases, with the next six weeks of data expected to guide the decision.
US Treasury Yields and Gold
Following the Federal Reserve’s firm stance earlier in the week, which dampened hopes of rate cuts this year, the US 10-year Treasury yield rose 8 basis points this week to 4.390 percent, though it remained below the weekly high of 4.436 percent.
In the commodities market, gold prices traded flat at $4,623 per ounce, remaining stuck in a tight trading range for over a month.
Overall, Friday’s market movements reflected a delicate balance between strong corporate earnings, lingering geopolitical risks, and central bank signals on interest rates. Investors will continue to monitor developments in West Asia and upcoming economic data for further direction.
