Asian equity markets posted broadly positive gains on Friday, buoyed by a strong rally on Wall Street driven largely by large technology companies. The upbeat sentiment helped lift Japan’s Nikkei 225 by 0.6% to 64,622.33 and South Korea’s Kospi by 0.9% to 6,635.67.
Australia’s S&P/ASX 200 was essentially flat, slipping just under 0.1% to 9,011.80, while Hong Kong’s Hang Seng surged 2.1% to 25,751.26. The Shanghai Composite added 0.8% to close at 3,973.27.
U.S. market backdrop
Wall Street closed higher on Thursday as bond yields eased and big technology stocks rallied. The S&P 500 rose 1.1%, the Dow Jones Industrial Average gained 1.2%, and the Nasdaq Composite climbed 1.4%.
Communication services stocks contributed significantly to the rally, given their large market valuations. Microsoft advanced 2.7%, Apple rose 1%, and Meta Platforms jumped 3%.
Chipmaker Nvidia, a key supplier of high‑end processors for artificial intelligence, rose 1.8% after announcing a $13 billion acquisition of the AI platform Hugging Face.
Energy and geopolitical context
U.S. crude oil edged up 65 cents to $91.95 a barrel, while Brent crude rose 47 cents to $95.99. The six‑month‑long conflict between the United States and Iran, which has intensified recently, remains a primary driver of higher energy prices. Nations that rely on the Strait of Hormuz, including Japan, are closely watching the situation.
Iran fired at Kuwait on Thursday in retaliation for recent U.S. airstrikes, adding to regional tension.
Interest‑rate outlook
The yield on the 10‑year Treasury, a benchmark influencing mortgage rates, slipped to 4.77% from 4.79% on Wednesday. Federal Reserve Governor Christopher Waller indicated that, should upcoming data show cooling inflation, he would be inclined to keep the Fed’s benchmark rate steady at the next policy meeting. If inflation remains elevated, a rate hike could still be on the table.
Investors are also watching the Bank of Japan’s upcoming policy meeting, with some analysts expecting a modest rate increase to support a stronger yen.
Currency movements
The U.S. dollar weakened slightly against the Japanese yen, moving to 155.78 yen from 155.84. The euro held steady at $1.1633.
Overall, the combination of a tech‑driven rally in the United States and easing bond yields helped lift Asian markets, even as energy prices remain pressured by ongoing Middle‑East tensions.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
