Stocks Eye Further Gains as Tech Earnings Lift Markets – Asia Market Wrap
US equity futures moved higher, suggesting the rally that pushed Wall Street benchmarks to record levels on strong megacap tech earnings could continue. The yen edged lower, giving back some of its gains following Japan’s intervention.
S&P 500 and Nasdaq 100 futures rose 0.2% after both indexes closed at all-time highs on Thursday, supported by optimism around corporate earnings. Apple shares gained in extended trading after issuing a strong revenue outlook, despite flagging higher costs for memory chips.
The yen weakened slightly to around 157.18 per dollar after climbing to 155.57 in the previous session. The currency had been nearing 161 before Japanese authorities stepped in. Japan’s Nikkei index rose 0.7%, with several Asian markets closed for a holiday.
Markets navigated a volatile April, with oil prices surging due to the Middle East conflict, yet US equities posted their strongest monthly performance since 2020, driven by a renewed surge in technology stocks and enthusiasm around artificial intelligence. Investors will now assess whether that momentum can continue in the face of rising costs and geopolitical uncertainty.
US economic data showed growth accelerated in the first quarter, supported by a sharp increase in AI-related investment. However, inflation pressures also picked up in March as the conflict drove a spike in fuel prices. The personal consumption expenditures index, the Federal Reserve’s preferred inflation gauge, rose 0.7% for the month, the largest increase since 2022.
Inflation risks are also building in Europe, with policymakers at the European Central Bank seen as leaning toward a rate hike at their June meeting unless energy prices ease and tensions in the Middle East subside.
Elsewhere, US crude rose 0.2% to around $105.30 a barrel after a decline in the previous session. President Donald Trump said the US would maintain its naval blockade of Iranian ports, fueling concerns that the Strait of Hormuz may remain closed for an extended period.
Inflation concerns are increasing with European Central Bank policymakers likely to raise interest rates at their next meeting in June unless there are positive developments on energy prices and ending the Iran war, according to people familiar with the situation.
In other comers of the market, US crude climbed 0.2% to trade around $105.30 a barrel after falling in the prior session. President Donald Trump said he was sticking with a naval blockade of Iranian ports as concerns mount that the vital Strait of Hormuz wouldn’t reopen anytime soon.
