Tech Earning Boost Optimism – Asia Market Wrap

US equity futures rallied Thursday on stronger-than- expected tech earnings and signs the Trump administration may be close to announcing the first round of trade deals to reduce planned tariffs.

Contracts for the S&P 500 and Nasdaq 100 both gained at least 1%, helped by a post-market rally for Microsoft Corp. and Meta Platforms Inc. following their bullish corporate results. Microsoft posted better- than-expected sales, while Meta also exceeded analysts’ sales forecasts, suggesting customer demand hasn’t been rattled by tariffs.

The advance for US futures came after the S&P 500 erased an intraday drop of more than 2% Wednesday to close 0.2% higher. Shares in Japan and Australia both posted modest gains Thursday. A number of markets are shut for holidays across Asia including Mainland China, Hong Kong, Singapore and India.

The yen weakened for a third day after the Bank of Japan left its benchmark rate unchanged at 0.5% while pushing back the timing for when it expects to reach its inflation target. Treasuries edged lower across the curve in Asia, while an index of the dollar rose.

Sentiment toward US equities was boosted Wednesday after President Donald Trump’s trade representative said the country was nearing an announcement of a first tranche of trade deals that would see the White House reduce planned tariffs on trading partners. Trump acknowledged his sweeping tariff program had risked imperiling him politically, but said he would not rush deals to appease nervous investors.