Asia Rises, Wall Street Breaks Record!
Asian stocks rallied on Friday after Wall Street's major indexes hit record highs, buoyed by a rally in artificial intelligence (AI)-themed stocks, solid corporate earnings, and signs that the US consumer remains resilient. Gains were seen in Japan, South Korea, and Australia, pushing the MSCI Asia Pacific Index higher and on track for its sixth consecutive weekly gain, the longest streak since late January.
The biggest support came from the continued AI rally in the US. Nvidia extended its six-day rally, pushing its market capitalization near US$6 trillion, while Cerebras Systems surged 68% on its debut day. In the after-hours session, Applied Materials also rallied after releasing positive forecasts, maintaining optimism about AI infrastructure spending.
Elsewhere, Brent rose 0.7% to around US$106 per barrel, while the dollar maintained its gains over the past four sessions. The pound weakened after new challenges to British Prime Minister Keir Starmer's leadership emerged. In Asia, markets were also monitoring US President Donald Trump's visit to China, with the Taiwan issue reportedly a sensitive issue once again.
In the bond market, US yields moved higher. The 2-year Treasury yield traded at 4.03% at the start of the Asian session, its highest level since June, while the 10-year yield rose one basis point to 4.49%. In Japan, the yield on 10-year government bonds also rose after producer prices surged to their highest level since 2023, reinforcing market concerns about inflation risks.
Although inflation risks have resurfaced as oil prices remain above US$100, the stock rally has been supported by confidence that corporate profits are still able to offset macroeconomic pressures. US data showed retail sales rose for a third straight month, signaling that consumption remains resilient despite high energy prices. Bloomberg Intelligence estimates first-quarter earnings for S&P 500 companies grew by about 27% annually, marking the sixth consecutive quarter of double-digit growth.
Several additional catalysts have also contributed to sentiment. Trump announced that China has agreed to buy 200 Boeing aircraft, while Hon Hai—Nvidia's key server assembly partner—posted a stronger-than-expected quarterly profit increase, confirming continued spending on AI hardware. Investors are also monitoring news that US authorities are moving to resolve the fraud charges against Gautam Adani. At the Tokyo open, the Topix rose 1.1% and the S&P/ASX 200 gained 0.4%, while S&P 500 futures were relatively flat, indicating the market is holding positions while awaiting further developments on the US-China agenda and the direction of global yields. (asd)
Source: Newsmaker.id
