Markets in the Asia-Pacific region experienced positive trends following a third day of gains on Wall Street, bolstered by a surge in tech stocks and eased U.S. tariff language. Japan’s Nikkei 225 increased by 0.91%, while the Topix rose by 0.88%. In South Korea, the Kospi saw a climb of 1.03%, and the smaller Kosdaq rose by 0.6%, buoyed by reports of advancements towards a U.S.-South Korea trade agreement. The Hang Seng index in Hong Kong opened 0.75% higher, and mainland China’s CSI 300 saw a modest rise of 0.3%. Australian markets were closed for a holiday.
Futures for the S&P 500 and Nasdaq-100 climbed by 0.3% and 0.4%, respectively, while Dow Jones futures remained flat. In the U.S., the major indexes closed higher, primarily due to gains in tech companies as investors sought positive signs regarding global trade. The S&P 500 rose by 2.03% to close at 5,484.77, with the Nasdaq Composite surging by 2.74% to end at 17,166.04. The Dow Jones increased by 1.23%, despite a significant 6.6% drop in IBM, closing at 40,093.40.
Prominent tech stocks such as Nvidia, Meta, Amazon, Tesla, and Microsoft contributed to the market rally. Louis Navellier, chairman of Navellier & Associates, noted that investors are adapting to tariff uncertainties as corporate earnings reports emerge, with hopes for potential tariff reductions on China. China will announce its April PMI figures next week, offering insights into factory activity amid ongoing tariff discussions. Economists at ANZ expect declines in both manufacturing and non-manufacturing PMIs for April compared to March.
Additionally, shares of South Korean shipbuilders surged as the nation works with the U.S. on a trade initiative. HD Hyundai Heavy Industries saw its shares increase by 5.32%, while Hanhwa Ocean’s stock rose by 6.06%. U.S. Treasury Secretary Scott Bessent deemed the recent U.S.-South Korea discussions as “very successful.” A South Korean minister mentioned that an agreement on shipbuilding cooperation was reached.
In broader Asian markets, Japan’s Nikkei 225 and Topix indices saw gains of 1.73% and 1.43%, respectively, following Prime Minister Shigeru Ishiba’s announcement of an emergency economic stimulus package. This initiative aims to address challenges related to U.S. President Donald Trump’s increased tariffs, as reported by Kyodo News. The stimulus plan includes support for corporate financing, measures to enhance domestic consumption, commitments to reduce fuel prices, and increased energy bill subsidies.
Additionally, Bank of Japan Governor Kazuo Ueda indicated that the central bank would continue raising interest rates if inflation nears the target of 2%. The BOJ will remain vigilant regarding potential economic impacts of heightened U.S. tariffs, which could affect the feasibility of achieving its inflation goals necessary for further rate hikes.
In India, the stock market appears poised for a positive opening, with the Gift Nifty up by 0.59%, suggesting optimism for the Sensex and Nifty indices. This favorable outlook is bolstered by strong global indicators, as Wall Street registered its third consecutive winning session, largely propelled by technology stocks. On April 25, major Indian firms, including Reliance Industries, Maruti Suzuki, and RBL Bank, are expected to announce their quarterly earnings, generating additional interest among investors, who are also awaiting updates from Tata Technologies and other significant corporations.
Pre-opening market trends indicate a strong start, with both benchmark indices showing positive movement. As of 9:06 AM today, the Sensex rose by 139 points, reaching 79,940.71, while the Nifty gained 42.30 points, positioning at 24,289.00 in early trading by 9:05a AM.
