Asia-Pacific markets traded mostly higher on Friday, tracking gains on Wall Street where the S&P 500 and Nasdaq Composite reached fresh record highs, supported by strong corporate earnings.
Investor sentiment was buoyed by upbeat results from major US companies including Apple and Caterpillar, helping markets look beyond softer-than-expected economic data and renewed geopolitical tensions involving Iran.
In early Asian trade, oil prices remained elevated amid ongoing concerns over potential escalation in the Middle East. Brent crude had earlier surged above $126 a barrel following reports that the US military was preparing to brief President Donald Trump on possible action against Iran. However, prices moderated slightly, with ICE Brent futures rising 1.4% to $111.90, while US West Texas Intermediate gained 0.61% to $105.71.
By 11:35am AEST, Australia’s S&P/ASX 200 had risen 0.6%, while Japan’s Nikkei 225 added 0.5%. South Korea’s KOSPI 200 remained closed for a public holiday, and several major regional markets, including China’s Shanghai Composite and Hong Kong’s Hang Seng Index, were shut for the May Day holiday.
Economic data releases across the region provided a mixed picture. In Japan, core inflation slowed more than expected, with the Tokyo core consumer price index rising 1.5% year-on-year in April, down from 1.7% in March and below market expectations of 1.8%.
The reading marked the slowest pace of annual growth since March 2022, with fuel and education subsidies helping to offset rising input costs linked to the Middle East conflict.
In South Korea, exports remained a bright spot, exceeding US$80 billion for a second consecutive month. Shipments surged 48% year-on-year to $85.89 billion in April, marking the country’s second-highest monthly export figure on record, supported by strong semiconductor demand.
Imports rose 16.7% to $62.11 billion, resulting in a trade surplus of $23.77 billion.
In Australia, producer price index (PPI) data from the Australian Bureau of Statistics (ABS) indicated subdued inflation pressures at the factory gate.
Final demand rose 0.4% in the March quarter, below expectations of 0.9%, and 3.0% over the year, representing the weakest quarterly growth since March 2021.
Overnight in the United States, major indices posted gains. The Dow Jones Industrial Average gained 1.6%, while the S&P 500 and Nasdaq Composite advanced 1.0% and 0.9%, respectively, both closing at record highs.
Commodity markets were mixed, with Brent crude settling little changed at $110.40 per barrel, while spot gold rose 1.7% to $4,621.72 per ounce.
Elsewhere, Chinese markets ended Thursday’s session mixed, with the Shanghai Composite edging 0.1% higher, while the CSI 300 slipped 0.1%.
Hong Kong’s Hang Seng Index declined 1.3%, and India’s BSE Sensex fell 0.8%.
European equities, however, posted broad gains. The UK’s FTSE 100 climbed 1.6%, Germany’s DAX rose 1.4%, and France’s CAC 40 added 0.5%.
