Source: Sharecast
Regional sentiment was further supported by overnight gains on Wall Street, where optimism around artificial intelligence developments outweighed concerns about global economic growth.
“Asian stock markets rose to their highest point in over a month, and US equity futures increased on Friday after China indicated it is reviewing trade discussions with the US, raising hopes that tariff disputes may ease,” said TickMill market strategy partner Patrick Munnelly.
“A regional index surged 1.5% as China considered negotiations following repeated signals from senior US officials expressing a readiness to engage.
“Japanese shares climbed in response to favourable remarks from the nation’s chief trade negotiator.”
Munnelly noted that futures for the S&P 500 and European markets also saw significant gains, while the MSCI Emerging Markets Currency Index rose 0.5% to reach a record high.
“Gold is on track for its first consecutive weekly loss of the year, while 10-year Treasury yields declined.
“The S&P 500 has experienced eight consecutive days of gains, marking the longest streak since August, driven by growing optimism that trade conflicts are subsiding since Trump implemented record-high tariffs on 2 April.
“This optimism will be tested as investors prepare for the US jobs report scheduled for today, the final important data release of the week, following lacklustre earnings from Apple and Amazon.”
Most markets rise on fresh hopes of US-China deal
Japan’s Nikkei 225 rose 1.04% to 36,830.69, driven by strong performances from Yamato Holdings, Sumitomo Dainippon Pharma, and Otsuka Holdings, each gaining over 5%.
The broader Topix index added 0.31% to finish at 2,687.78.
In Hong Kong, the Hang Seng Index jumped 1.74% to 22,504.68, with biotech and tech stocks leading gains.
WuXi AppTec surged 7.07%, while Xiaomi and WuXi Biologics advanced 6.31% and 5.7% respectively.
Mainland Chinese markets remained closed for the Labour Day holiday.
Australia’s S&P/ASX 200 rose 1.13% to 8,238.00, lifted by resource and financial stocks.
Nickel Mines climbed 6.36%, and Platinum Asset Management and IDP Education also posted solid gains.
New Zealand’s S&P/NZX 50 outperformed with a 1.48% rise to 12,327.89.
Mainfreight soared 12.4%, while Pacific Edge and Ryman Healthcare each rose over 3%.
South Korea’s Kospi 100 edged down 0.05% to 2,539.34, weighed by losses in major industrial stocks.
Hyundai Glovis fell 5.7%, with Doosan Heavy and Hyundai Mobis also declining sharply.
In currency markets, the dollar was last down 0.31% on the yen, trading at JPY 144.94, as it weakened 0.55% against the Aussie to AUD 1.5580, and retreated 0.28% from the Kiwi, changing hands at NZD 1.6882.
Oil prices dipped slightly - Brent crude futures were last down 0.18% on ICE to $62.02 a barrel, while the NYMEX quote for West Texas Intermediate slipped 0.2% to $59.12.
Unemployment ticks higher in Japan, Korean inflation holds steady
In economic news, Japan's unemployment rate ticked up to 2.5% in March, slightly above the previous month's level and exceeding economists’ expectations.
The increase came amid growing economic uncertainty linked to US tariffs and weakening corporate earnings.
Analysts surveyed by Reuters had forecast a 2.4% rate, while separate data from the labour ministry showed the jobs-to-applicants ratio rose to 1.26 from 1.24 in February, suggesting a mild improvement in job availability despite the uptick in joblessness.
The Bank of Japan, which left interest rates unchanged on Thursday, cited tariff risks in its decision to lower its growth outlook.
In South Korea, inflation held steady in April at 2.1% year on year, matching the pace recorded in March and slightly exceeding the 2% estimate from Reuters-polled economists.
Price increases were driven by food, clothing, and education costs, according to data released by Statistics Korea.
On a monthly basis, consumer prices rose 0.1% after a 0.2% increase in March, marking the softest monthly gain since November 2024.
The data gives the Bank of Korea room to consider monetary easing when it meets later this month.
Reporting by Josh White for Sharecast.com.