Stocks in Asia traded higher on Friday after a rally on Wall Street that brought the S&P 500 close to its record high. Benchmarks in Tokyo, Seoul, Sydney, and China all rose, with investors focusing on the release of April inflation figures.
Japan reported a record current account surplus for the fiscal year through March, driven by strong auto exports and solid returns on overseas investments. However, weak consumer spending tempered the positive data. The Nikkei 225 in Japan rose 0.4%, while Australia’s S&P/ASX 200 and South Korea’s Kospi also saw gains.
In Hong Kong, the Hang Seng jumped 2.1%, and the Shanghai Composite edged 0.2% higher. Price data expected on Saturday will give further insight into the economy’s momentum.
On Wall Street, the S&P 500 rose 0.5% on Thursday, with positive earnings reports from companies like Equinix and Yeti Holdings driving gains. However, Airbnb’s forecasted revenue range fell short of expectations, causing its stock to drop.
The bond market saw yields stabilize following a smooth auction of 30-year Treasury bonds. Treasury yields have been easing since Federal Reserve Chair Jerome Powell suggested that the central bank is closer to cutting interest rates than hiking them, despite high inflation readings.
In energy trading, benchmark U.S. crude oil rose to $79.86 a barrel, while the U.S. dollar strengthened against the Japanese yen. The euro also fell slightly against the dollar.
Overall, the positive market activity in Asia and the U.S. suggests a cautious optimism among investors as they navigate economic data and corporate earnings reports.
