The benchmark Nikkei 225 surged 1.6% to a record close of 72,353.96, while South Korea’s KOSPI rose 0.7% to 9,114.55, also marking an all-time high. Both indexes have climbed sharply in recent months, supported by sustained investor enthusiasm for AI-related technology stocks.

U.S. futures traded lower, reflecting cautious sentiment as markets weighed geopolitical developments alongside upcoming inflation data, including the Federal Reserve’s preferred personal consumption expenditures (PCE) index due later this week.

Technology and AI Drive Japan and Korea to New Peaks

In Tokyo, gains were led by technology and semiconductor-linked companies as investors continued to position for long-term AI demand.

SoftBank Group rose 1.9%, while chip equipment maker Tokyo Electron advanced 3.2%.

In Seoul, memory chip producer SK Hynix jumped 5.6%, reinforcing the sector-wide momentum across AI-linked supply chains.

The Nikkei 225 and Kospi have both recorded extraordinary gains over the past six months, rising more than 40% and 120% respectively, underscoring the scale of the technology-driven rally.

Neil Newman, managing director and head of strategy at Astris Advisory Japan, said market conditions remained strong but warned valuations were becoming stretched. “We’re seeing another strong market today,” he noted, adding that the Japanese market is “probably getting a little stretched” given geopolitical risks in the Middle East.

Regional Markets Show Mixed Performance

Elsewhere in Asia, performance was uneven. Hong Kong’s Hong Kong Hang Seng Index slipped 0.6% to 23,785.50, while mainland China’s Shanghai Composite Index gained 1.8% to 4,163.10.

Australia’s S&P/ASX 200 edged down 0.1% to 8,816.10, while Taiwan’s Taiwan Taiex rose 2.8%. India’s Sensex added 0.4%.

The divergence highlighted investor sensitivity to both global technology momentum and geopolitical risk factors.

Oil Prices Ease on Iran Negotiation Optimism

Energy markets moved lower as diplomatic discussions between the United States and Iran showed early signs of progress.

Brent crude, the international benchmark, declined 1.1% to $79.70 per barrel, easing from higher levels seen during recent geopolitical tensions.

High-level talks held in Switzerland between U.S. and Iranian representatives concluded early Monday, with technical discussions expected to continue through the week. Mediators Qatar and Pakistan described the negotiations as showing “encouraging progress.”

However, uncertainty remains over energy supply routes. Iranian authorities stated the Strait of Hormuz was closed again over the weekend, while U.S. officials indicated that maritime traffic had continued. The conflicting accounts underscore ongoing risks to one of the world’s most critical oil shipping corridors.

ING commodities strategists Warren Patterson and Ewa Manthey warned that “moving towards a more permanent deal will be challenging, with very real risks of a flare-up in hostilities.”

Thomas Mathews, head of Markets Asia Pacific at Capital Economics, said energy flows were likely to recover only gradually, noting that attention is now focused on how quickly tanker traffic returns to the region.

Currency and U.S. Economic Focus

In foreign exchange markets, the U.S. dollar strengthened to 161.76 Japanese yen from 161.22 yen, while the euro eased to $1.1445 from $1.1473.

Investors are also awaiting the upcoming release of the U.S. PCE inflation index, a key indicator for Federal Reserve policy expectations, which is expected to shape broader risk sentiment across global markets later in the week.

Tags: Asian Markets, AI Rally, Stock Indices, Nikkei 225, KOSPI, Oil Prices, Iran Talks, Semiconductor Stocks, Global Economy, Currency Markets

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Market participants also turned their attention to the U.S. Federal Reserve, which was set to announce its latest interest-rate decision following a two-day policy meeting. Expectations broadly pointed to no immediate change in benchmark borrowing costs, even as concerns persisted over inflation pressures linked to higher energy prices.

Oil Prices Stabilize After Sharp Decline

Crude oil prices steadied after suffering significant losses earlier in the week as traders responded positively to prospects for reduced tensions in the Middle East and the potential reopening of key energy shipping routes.

Brent crude, the international benchmark, fell 0.3% to $78.76 per barrel in early trading after dropping more than 5% on Tuesday. U.S. benchmark crude slipped 0.4% to $75.78 per barrel.

Although prices have retreated, crude remains elevated compared with levels seen before the conflict began. Market attention has focused on the future of the Strait of Hormuz, a critical corridor for global oil and gas shipments.

Economists at HSBC noted in a recent research note that restoring normal energy flows could take time. They cited challenges including mine clearance operations, insurance reinstatement, the reduction of excess regional oil inventories, vessel repositioning, and the restart of previously idled production facilities.

Japanese Stocks Gain on Export Strength

Japan’s stock market outperformed many regional peers after government trade data showed exports increased 17% in May compared with a year earlier. Strong demand for technology-related products contributed to the rise.

The Nikkei 225 advanced 0.8% to 69,926.08, remaining close to a record high reached earlier in the week.

Elsewhere in the region, South Korea’s Kospi edged 0.2% lower to 8,706.10 as major technology shares weakened. Samsung Electronics, one of the market’s largest companies, declined 1.9%.

Hong Kong’s Hang Seng Index fell 0.8% to 24,273.95, while mainland China’s Shanghai Composite Index slipped 0.1% to 4,089.26.

Australia’s S&P/ASX 200 gained 0.5% to 8,965.30. Taiwan’s Taiex declined 0.5%, while India’s Sensex rose 0.3%.

Federal Reserve Decision in Focus

The Federal Reserve’s latest policy meeting marked the first under Chair Kevin Warsh. Investors were closely monitoring the outcome as policymakers balanced economic growth concerns against inflation risks associated with energy market disruptions.

President Donald Trump has continued to advocate for lower interest rates to support economic activity. However, rising energy costs tied to the Middle East conflict have complicated the inflation outlook.

Bond markets reflected cautious positioning ahead of the Fed announcement. The yield on the benchmark 10-year U.S. Treasury note fell below 4.44%, compared with 4.47% late Monday.

Morningstar Chief U.S. Economist Preston Caldwell wrote that underlying inflation pressures appeared relatively subdued due to weak wage growth and slowing rent increases. He said those factors could contribute to lower inflation once the effects of higher energy prices ease.

Wall Street Ends Mixed Near Record Levels

U.S. equity markets closed with mixed results on Tuesday as investors rotated away from some technology shares while maintaining interest in other sectors.

The S&P 500 declined 0.6% to 7,511.35 after recently reaching a record high. The Dow Jones Industrial Average rose 0.6% to 51,999.67, setting another all-time high.

The Nasdaq Composite fell 1.2% to 26,376.34 amid renewed concerns surrounding valuations in artificial intelligence-linked stocks.

Chipmaker Nvidia dropped 2.4%, while Broadcom fell 4.4%. Micron Technology lost 6.2%.

Corporate Developments Draw Attention

Several company-specific developments also influenced trading activity.

SpaceX gained 4.8%, extending a recent rally following its debut on Wall Street.

Yum Brands advanced 1.9% after announcing plans to sell Pizza Hut in a deal valued at $2.7 billion. The company said most restaurant assets would be acquired by private equity firm LongRange Capital.

Currency Markets

In foreign-exchange trading, the U.S. dollar weakened slightly against the Japanese yen, falling to 160.30 yen from 160.42 yen. The euro edged higher to $1.1612 from $1.1608.

While investors welcomed signs of progress toward ending the U.S.-Iran conflict, questions remain over the implementation of the interim agreement and its impact on regional stability. Energy markets, central bank policy, and geopolitical developments are likely to remain key drivers of market sentiment in the coming weeks.

Tags: Asian Markets, Oil Prices, Brent Crude, U.S.-Iran Agreement, Federal Reserve, Inflation, Wall Street, Global Economy, Energy Markets, Treasury Yields

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Market data showed gains across several major Asian indexes, with technology-related stocks helping drive momentum after strong performances in the United States semiconductor sector. The rally followed record closes for the S&P 500 and Nasdaq indexes, supported by continued investor interest in artificial intelligence-linked companies.

In Japan, the Nikkei 225 rose more than 1%, while Taiwan and South Korea posted stronger gains led by chipmakers and electronics manufacturers. Corporate trading data showed notable advances for companies tied to semiconductor equipment and memory-chip production.

Oil prices moved lower during trading, reducing pressure on global markets that had been closely monitoring supply risks connected to the Strait of Hormuz and ongoing uncertainty surrounding U.S.-Iran relations. Brent crude and U.S. benchmark crude both declined modestly, according to market pricing data cited in reports Wednesday.

Technology Stocks Extend Global Rally

Investor attention remained centered on artificial intelligence and semiconductor demand after strong gains in U.S. chipmakers. Market reports indicated that optimism surrounding memory-chip demand and AI infrastructure spending continued to support broader equity sentiment.

Trading in Asian markets mirrored recent Wall Street strength, where technology companies have continued to drive benchmark indexes higher despite ongoing concerns over inflation, interest rates and geopolitical instability.

The latest gains also reflected easing pressure in bond markets. Lower oil prices contributed to declines in U.S. Treasury yields, which investors have been watching closely for signals about inflation expectations and future monetary policy conditions.

Geopolitical Risks Still in Focus

Although markets reacted positively to lower crude prices, uncertainty surrounding negotiations involving Iran remained a significant factor for investors.

Recent statements from U.S. President Donald Trump regarding possible diplomatic progress contributed to shifts in oil prices earlier in the week, according to Associated Press reporting. Energy markets have remained sensitive to any developments affecting shipping through the Strait of Hormuz, a critical route for global crude exports.

Market participants also continued monitoring inflation data and central bank policy signals globally, particularly as energy costs remain a major influence on consumer prices and economic growth expectations.

Details regarding any broader resolution to regional tensions remain unclear.

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The dominant market angle was cross-market risk sentiment, with investors increasingly positioning around the view that global growth may avoid a deeper shock from elevated crude prices and Middle East shipping risks. Brent crude held near $94.94 per barrel, while U.S. benchmark crude traded around $91.66, levels that remain elevated but have steadied after recent volatility linked to the Strait of Hormuz.

Market Reaction Across Asia

Japan’s Nikkei 225 rose 2.4%, outperforming major regional peers as exporters and technology shares tracked overnight gains in the U.S. South Korea’s Kospi added 2.0%, supported by semiconductor and industrial names, while Hong Kong’s Hang Seng Index climbed 1.2%. Mainland China’s Shanghai Composite advanced 0.6%, helped by first-quarter GDP growth data showing the economy expanded 5% year-over-year, broadly in line with policy targets.

The move followed another record session on Wall Street, where the S&P 500 closed at 7,022.95, up 0.8%, while the Nasdaq Composite gained 1.6%. According to Reuters market reporting, the rally was reinforced by strong first-quarter bank earnings, softer inflation concerns and optimism that geopolitical risks may not materially derail near-term corporate performance.

Oil and Macro Sensitivity Remain Central

Despite the positive equity tone, energy markets remained a key variable for Asia-Pacific trading desks. Crude prices have risen sharply since the conflict began earlier this year, raising the risk of imported inflation for major oil-consuming economies including Japan, South Korea and India.

Still, the recent stabilization in oil prices appears to have eased immediate fears of margin pressure for transport, manufacturing and consumer sectors. Market participants are now focusing on whether diplomatic efforts can preserve shipping flows through the Gulf and prevent renewed supply disruptions.

Strategic Outlook for Regional Markets

The broader implication for Asian markets is that investors are shifting from pure geopolitical defense positioning toward a more selective risk-on stance, especially in export-heavy sectors leveraged to U.S. demand and AI-driven technology spending.

However, analysts continue to flag China’s external sector as a vulnerability if slower global trade volumes emerge from prolonged energy-related uncertainty. That leaves oil stability, U.S. earnings momentum and diplomatic developments as the three principal drivers for regional equity direction into the coming sessions.

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The dominant market angle was cross-asset reaction to geopolitical de-escalation, with lower oil prices directly feeding gains in export-heavy Asian bourses and improving risk sentiment after Wall Street’s strongest session in nearly a year.

Energy retreat drives regional equity rebound

Brent crude declined 4.4% to $99.44 a barrel, while U.S. benchmark West Texas Intermediate fell 3.8% to $97.55, according to market pricing cited by AP. The drop reversed part of the sharp risk premium built into crude during weeks of disruption near the Strait of Hormuz, the maritime chokepoint that handles roughly one-fifth of global oil flows.

Asian stock markets responded decisively. South Korea’s Kospi surged 8.4%, Tokyo’s Nikkei 225 advanced 5.2%, and Taiwan’s Taiex gained 4.6%, as investors rotated back into cyclical and technology-linked names that had been pressured by elevated energy costs and fears of margin compression.

Hong Kong’s Hang Seng rose 2.3%, mainland China’s Shanghai Composite added 1.5%, while India’s Sensex climbed 2.4%, underscoring the breadth of the rebound across the Asia-Pacific region.

The market response suggests investors are recalibrating expectations for near-term inflation trajectories, particularly in import-dependent Asian economies where fuel costs feed quickly into logistics, manufacturing, and consumer pricing.

Macro implications extend beyond oil

The decline in crude prices may offer modest relief for central banks monitoring war-related inflation spillovers. Earlier this week, U.S. gasoline prices had moved above $4 per gallon for the first time since 2022, reinforcing concerns that the conflict could delay monetary easing cycles globally.

A parallel boost came from domestic data in Japan, where a Bank of Japan survey showed improved sentiment among major manufacturers despite weeks of geopolitical uncertainty. That data point added a macroeconomic foundation to the equity rally beyond purely sentiment-driven gains.

Still, economists cautioned that even a formal military de-escalation may not fully unwind the supply-chain and freight disruptions already set in motion across shipping routes linked to the Gulf.

Wall Street strength reinforces global risk appetite

The rebound in Asia followed a strong lead from U.S. markets, where the S&P 500 rose 2.9%, the Dow Jones Industrial Average gained 2.5%, and the Nasdaq Composite climbed 3.8% in Tuesday trading. The gains reflected renewed appetite for growth sectors once the probability of prolonged oil shocks began to ease.

Semiconductor and healthcare deal activity also supported the broader tone. Nvidia gained after disclosing a $2 billion investment in Marvell Technology, while Eli Lilly announced an acquisition of Centessa Pharmaceuticals, reinforcing a risk-on backdrop for equities.

The combination of falling crude, stronger U.S. equities, and improved Asian manufacturing sentiment points to a market increasingly pricing a shorter-duration geopolitical shock, though volatility around Hormuz shipping security remains a critical variable for the next trading sessions.

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Brent crude traded near $83 per barrel after surging roughly 15% since recent U.S. and Israeli strikes on Iran, according to market data cited by Reuters. The energy spike has introduced renewed inflation concerns while adding pressure on currencies and bond markets, particularly in Europe.

Asian Markets Rebound After Policy Intervention

Equities across Asia recovered strongly following sharp losses earlier in the week. South Korea’s benchmark KOSPI index closed nearly 10% higher after President Lee Jae Myung activated a $68 billion market stabilization fund aimed at easing volatility triggered by the Middle East crisis.

Japanese equities also advanced, with the Nikkei 225 rising almost 2%. Chinese markets gained about 1% after Beijing reaffirmed a 4.5%–5% economic growth target as part of its broader economic planning.

The rebound reflected investor response to direct policy intervention and renewed growth guidance rather than a shift in geopolitical risk.

European Shares Stabilize Despite Energy Concerns

European equities edged higher later in the session after initial declines, with the pan-European STOXX benchmark reversing modest losses as reports circulated about potential diplomatic channels between Iran and the United States.

Market sentiment improved following media reports suggesting Iranian intelligence had contacted the CIA regarding possible paths toward de-escalation. However, an Iranian intelligence ministry source later rejected those claims.

Despite the equity stabilization, European currencies and government bonds remained under pressure as energy prices continued to climb.

Oil Markets Reflect Supply Risk

Energy markets remain the central driver of global financial sentiment. Brent crude briefly reached $84.25 per barrel before easing slightly in London trading.

Ship-tracking data indicates roughly 300 oil tankers are currently located within the Strait of Hormuz, while maritime traffic through the strategic chokepoint has slowed significantly following the outbreak of hostilities.

Market participants are also assessing policy responses from Washington. U.S. Energy Secretary Chris Wright said the market impact of the conflict would represent a “small price” to achieve military objectives, according to public remarks cited by Reuters.

Bond Yields Rise as Inflation Concerns Resurface

Higher energy prices are influencing expectations for global monetary policy. Analysts noted that surging oil and natural gas prices could complicate interest-rate easing cycles currently anticipated by markets.

The yield on the U.S. 10-year Treasury rose roughly four basis points to about 4.12%. European sovereign bond markets also weakened, placing Germany’s benchmark Bund on track for its steepest weekly sell-off in roughly a year.

Currency markets reflected similar caution. The U.S. dollar index rose about 0.2% to 98.9, while the euro slipped to around $1.1610 and the Japanese yen weakened to roughly 157 per dollar.

Central Bank Outlook in Focus

Central bank commentary remains closely watched as investors evaluate how energy shocks could influence inflation forecasts.

European Central Bank President Christine Lagarde and other policymakers are scheduled to speak later in the day. Investors will monitor their remarks for signals about how the geopolitical situation may factor into monetary policy decisions.

Germany’s Bundesbank President Joachim Nagel warned that a prolonged conflict involving Iran could increase inflationary pressures and weigh on economic growth, though he said it was too early to determine the full impact.

Strategists at Commerzbank noted that recent market developments could influence the European Central Bank’s March economic projections, depending on how long the geopolitical tensions persist.

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Japan’s Nikkei 225 fell 0.4% to 50,447.95, while Australia’s S&P/ASX 200 edged down nearly 0.1% to 8,580.30. South Korea’s Kospi was largely flat, rising less than 0.1% to 4,144.61. In China and Hong Kong, the Shanghai Composite lost 0.6% to 3,887.00 and the Hang Seng declined 0.4% to 25,337.62.

Eric Schiffer, chairman of private equity firm The Patriarch Organization, said markets may see further gains later this year and into 2027. “The Fed may be even more accommodating than what the market is currently pricing in,” Schiffer noted. “There is also a strong likelihood of additional easing, either through targeted quantitative measures or regulatory adjustments, supporting both consumers and broader financial markets.”

Wall Street Holds Near Records

In the United States, the S&P 500 dipped 0.1%, hovering near its all-time high set in October. The Dow Jones Industrial Average fell 179 points, or 0.4%, while the Nasdaq Composite inched up 0.1%.

Traders widely expect the Fed to cut rates for a third time this year, a move designed to stimulate economic growth and investment, though it could further fuel inflation. Market attention now centers on Fed guidance for 2026, with analysts anticipating careful messaging to manage expectations for future rate adjustments.

Inflation remains above the Fed’s 2% target, and policymakers are divided over whether persistent price pressures or a slowing labor market pose the greater economic risk.

Bond Yields React to Job Market Data

U.S. Treasury yields rose after a report showed employers were advertising 7.7 million job openings in October, slightly higher than the previous month and the highest since May. The yield on the 10-year Treasury climbed to 4.18% from 4.17%, while the two-year yield increased to 3.60% from 3.57%.

Corporate Moves and Commodity Trends

Exxon Mobil shares gained 2% following an upgraded profit forecast over the next five years. Home Depot fell 1.3% after projecting a potential 1% contraction in the broad home improvement market for 2026. Nvidia slipped 0.3% after former President Donald Trump approved sales of an advanced AI chip to select Chinese customers, though the H200 is not the company’s primary product.

In energy markets, U.S. crude rose 13 cents to $58.39 per barrel, while Brent crude added 13 cents to $62.07 per barrel. In currency trading, the U.S. dollar declined slightly to 156.67 Japanese yen, and the euro held steady at $1.1627.

Source: Independent – Asian benchmarks mostly decline as investors anticipate US rate cut

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Asian markets mostly advanced on Thursday as investors welcomed the reopening of the U.S. government after President Donald Trump signed a funding bill that ended a historic 43-day shutdown. The move eased concerns over prolonged disruption to federal operations and the release of key U.S. economic data.

Global Relief After Record Shutdown

U.S. stock futures inched higher following the announcement, with traders expressing relief that Washington had reached a temporary resolution to the budget impasse. The record shutdown had left hundreds of thousands of federal employees without pay, disrupted air travel, and strained public services such as food banks.

“The shutdown had blocked not just spending, but also delayed a raft of federal economic data,” said Stephen Innes, managing partner at SPI Asset Management. “For markets, the only line that matters is simple: the lights are coming back on.”

Wall Street ended Wednesday’s session mixed but near all-time highs, signaling investor confidence in the broader economy’s resilience despite recent disruptions.

Regional Market Performance

Japan’s Nikkei 225 gained 0.3% to 51,213.35, supported by broad market optimism, though losses in heavyweight SoftBank Group limited further advances. The tech conglomerate dropped 3.4% after confirming it had sold its remaining shares in U.S. chipmaker Nvidia, extending a 3.5% slide from the previous session.

Hong Kong’s Hang Seng Index rose 0.3% to 27,009.65, while mainland China’s Shanghai Composite added 0.7% to 4,029.50, boosted by investor anticipation of new credit and lending data.

In Australia, the S&P/ASX 200 slipped 0.5% to 8,753.40, its third straight loss, after stronger-than-expected employment figures dampened hopes for near-term interest rate cuts. The country’s jobless rate fell to 4.3% in October from 4.5% in September, signaling a resilient labor market.

South Korea’s Kospi fluctuated before settling up 0.6% at 4,176.44 in afternoon trading, while Taiwan’s Taiex rose 0.2% and India’s BSE Sensex added 0.3%.

Wall Street Near Records as AI Stocks Swing

In the U.S., the S&P 500 climbed 0.1% to 6,850.92, hovering near its all-time peak. The Dow Jones Industrial Average rose 0.7% to a new record high of 48,254.82, while the Nasdaq composite slipped 0.3% to 23,406.46.

Gains in airline stocks led the rally as investors bet on a rebound in air travel following the end of the shutdown.

Advanced Micro Devices (AMD) surged 9% after Chief Executive Lisa Su forecast annual compounded revenue growth above 35% over the next three to five years, citing “accelerating AI momentum.” Her comments reignited optimism in the artificial intelligence sector, though analysts warned that valuations remain stretched.

Nvidia shares were volatile after a sharp monthly decline of 4.6%, reflecting investor caution following years of explosive gains. Palantir Technologies, another high-profile AI stock, dropped 3.6%, ranking among the day’s biggest decliners on the S&P 500.

Despite concerns of overvaluation, AI-linked companies have been key drivers of the U.S. stock market’s recent record-setting rally. Some analysts, however, draw parallels to the early-2000s dot-com bubble, when tech stocks collapsed after a period of unchecked enthusiasm.

Energy and Currency Movements

In commodities trading, U.S. benchmark crude oil edged down 9 cents to $58.40 a barrel, while Brent crude, the international standard, slipped 8 cents to $62.37.

On currency markets, the U.S. dollar strengthened slightly to 154.93 Japanese yen from 154.70 yen, while the euro eased marginally to $1.1592 from $1.1594.

Analysts expect markets to stabilize in the coming days as investors digest fresh economic data delayed by the U.S. shutdown and monitor the Federal Reserve’s upcoming statements on interest rate policy.

Source: AP News – Asian shares are mostly higher after Trump signs bill ending US government shutdown

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Stocks edge higher after Powell’s wait-and-see message, as tensions ease in the Middle East

Asian markets posted modest gains Wednesday, following Wall Street’s rally and signs of easing geopolitical tensions in the Middle East. Investors are now shifting their focus to the Federal Reserve and the potential impact of tariffs and oil prices on the global economy.

In testimony to Congress on Tuesday, Federal Reserve Chair Jerome Powell signaled that the Fed is in no rush to cut interest rates — a stance that contrasts sharply with former President Donald Trump’s calls for immediate action.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said before the House Financial Services Committee.

Oil Prices Bounce Back, but Remain Below Pre-Conflict Levels

Oil prices rebounded slightly early Wednesday after tumbling roughly 6% on Tuesday. The drop followed a fragile but holding ceasefire between Israel and Iran, easing fears that the conflict might disrupt global oil supplies.

• U.S. crude rose 1.2% to $65.16 a barrel
• Brent crude added 1.1%, reaching $66.95

Despite the slight uptick, oil remains cheaper than it was before the conflict erupted nearly two weeks ago — good news for consumers and central bankers trying to rein in inflation.

“Easing stress in energy markets is excellent news for everyone who doesn’t want to see higher oil prices translating into accelerating inflation and tighter monetary policy,” said Ipek Ozkardeskaya of Swissquote Bank.

Asian Markets Follow Wall Street’s Lead

Investor confidence seems to be rebounding. After Trump announced the Israel-Iran ceasefire, global markets rallied. On Tuesday, the S&P 500 surged 1.1%, climbing back within 0.8% of its record high from February. The Dow Jones jumped 1.2%, and the Nasdaq added 1.4%.

That momentum carried over to Asian trading early Wednesday:

• Japan’s Nikkei 225: +0.3% to 38,917.08
• Hong Kong’s Hang Seng: +0.9% to 24,386.59
• Shanghai Composite: +0.5% to 3,437.10
• South Korea’s Kospi: +0.2% to 3,110.19
• Australia’s S&P/ASX 200: +0.1% to 8,562.90
• Taiwan’s Taiex: +1.1%
• India’s Sensex: +0.7%
• Thailand’s SET: -0.4%

“The world can now move on to face other difficult choices like tariffs and things like that,” said Frances Lun, CEO of GEO Securities in Hong Kong. “The market is well on its way to rebound and could again reach new levels.”

Fed Remains Cautious Amid Tariff Uncertainty

While the ceasefire and falling oil prices are calming markets, the Federal Reserve is keeping a close eye on another wildcard: tariffs.

The Fed has made it clear that it’s not ready to act until it sees more data on how the recently imposed tariffs — part of Trump’s broader economic strategy — will impact inflation and growth. Tuesday’s consumer confidence report came in weaker than expected, though inflation remains only slightly above the Fed’s 2% target.

Currency Markets

In currency trading:

• The U.S. dollar rose to 145.10 Japanese yen from 144.93 yen
• The euro edged up slightly to $1.1617 from $1.1610

Source: AP News – Asian shares gain as investors shift focus to Federal Reserve, tariffs

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Asian stock markets were mostly higher in light trading on Good Friday, following a volatile session on Wall Street. The Dow Jones Industrial Average dropped 1.3%, largely due to UnitedHealth’s sharp decline after a weaker-than-expected profit report.

With U.S. stock and bond markets closed for the day, Asian investors took the opportunity to react to the latest global developments. Tokyo’s Nikkei 225 rose 1% to 34,730.28, while the Kospi in South Korea increased 0.5% to 2,483.42. Taiwan’s Taiex gained 0.3%, bolstered by a strong performance from Taiwan Semiconductor Manufacturing Co. (TSMC), whose quarterly profit matched analysts’ expectations. TSMC reassured investors that it had not seen a significant slowdown in demand due to the ongoing trade tensions between the U.S. and China.

However, TSMC remains cautious, with Chief Financial Officer Wendell Huang noting that there are still risks tied to potential tariff policies. Despite this uncertainty, TSMC’s U.S. stock climbed 0.1% on Thursday.

In contrast, the Shanghai Composite index slipped 0.1% to 3,276.73, while Bangkok’s SET index rose 0.6%. Many other markets were closed for holiday observances ahead of Easter.

On Thursday, the S&P 500 gained a modest 0.1%, though three-quarters of the stocks in the index posted gains. Meanwhile, the Nasdaq composite fell by 0.1%, continuing its subdued performance after a steep drop the previous day.

A key factor weighing on the market was Nvidia, which continued its decline due to news of new export restrictions on chips to China. These restrictions are expected to negatively impact Nvidia’s first-quarter earnings by $5.5 billion. The stock dropped 2.9%, making it one of the largest detractors from the S&P 500.

The Dow Jones Industrial Average experienced a significant drop of 527 points, primarily due to UnitedHealth’s 22.4% plunge, the largest drop since 1998. The insurer revised its financial outlook downward, citing higher-than-expected healthcare usage among its Medicare Advantage customers.

On a more positive note, oil and gas stocks rallied after crude oil prices regained some of the losses they had suffered earlier in the month. Diamondback Energy surged 5.7%, and Halliburton climbed 5.1%. U.S. benchmark crude oil rose by $2.18 to $64.01 per barrel, while Brent crude, the international standard, gained $2.11 to $67.96 per barrel.

The ongoing U.S.-China trade war remains a major source of uncertainty for markets. Economists continue to voice concerns that President Trump’s use of sharp tariff hikes could potentially lead to a recession if these tariffs are sustained.

Despite this, Trump offered a glimmer of hope on Thursday, suggesting that upcoming trade negotiations with other countries might reduce tariff levels. However, his comments about Federal Reserve Chair Jerome Powell added to the economic uncertainty. Trump criticized Powell for suggesting that tariffs could slow the economy and reignite inflation. The president called the Fed’s actions “too late and wrong,” even stating that Powell’s tenure should end soon.

This rhetoric from the White House presents a dilemma for the Fed: If it cuts interest rates to stimulate borrowing and spending, inflation could rise, which could harm the economy in the long term.

In the U.S., recent economic reports presented a mixed picture. One report showed that fewer workers applied for unemployment benefits last week than economists had expected, suggesting a stable job market. However, another report indicated that manufacturing in the mid-Atlantic region unexpectedly contracted, signaling potential challenges for the U.S. economy.

In Europe, stock indexes saw declines on Thursday, with France’s CAC 40 slipping 0.6% and Germany’s DAX falling 0.5%. This was following the European Central Bank’s decision to cut its main interest rate, a move that typically supports stock prices. However, since investors had anticipated the cut, its impact was muted.

The U.S. dollar weakened slightly, buying 142.37 Japanese yen, down from 132.44 yen on Thursday. The euro rose to $1.1375 from $1.1367.

As markets continue to navigate global trade tensions and economic uncertainty, all eyes will be on future developments, particularly regarding the U.S.-China trade talks and potential adjustments in monetary policy.

Source: AP News – Asian markets are mostly higher as Wall Street is stuck in trade war doldrums

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