Asian stocks saw a rise on Friday, mainly driven by gains in the technology sector. Investors were pleased with the strong earnings reported by Microsoft and Alphabet. The positive performance of these tech giants boosted market sentiment across the region.
Japanese stocks, on the other hand, did not perform as strongly as their Asian counterparts. The focus in Japan was on the Bank of Japan meeting, which was scheduled to conclude later in the day. Uncertainty loomed over the market, especially after softer-than-expected Tokyo inflation data was released.
Regional markets in Asia closely followed the gains in U.S. stock index futures. The tech-heavy Nasdaq rallied after the impressive earnings from Microsoft and Alphabet. This positive momentum spilled over into the Asian markets, overshadowing the weak overnight close on Wall Street.
In Japan, the Nikkei 225 index rose by 0.4%, while the TOPIX increased by 0.2%. However, the uncertainty surrounding the BOJ meeting kept market sentiment in check. The softer-than-expected inflation data from Tokyo added to the apprehension among investors.
Tech stocks were the best performers in the Asian markets on Friday. South Korea’s KOSPI rose by 1%, while Hong Kong’s Hang Seng index saw a 1.5% increase. The positive earnings from U.S. tech giants fueled optimism in the market, particularly in the artificial intelligence sector.
In China, the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose by 0.8% and 0.6%, respectively. The gains in tech stocks contributed to the positive performance of the Chinese market. Futures for India’s Nifty 50 index also pointed to a positive open, reflecting the overall positive sentiment in the region.
However, Australia’s ASX 200 was the sole underperformer for the day, falling by 1.3% in catch-up trade after a holiday on Thursday. The increase in producer price index inflation over the first quarter spooked Australian stocks, as it signaled higher interest rates in the country.
Despite the positive performance of Asian stocks driven by gains in the technology sector, investors remained cautious due to uncertainty surrounding interest rates. The strong earnings from U.S. tech giants provided some support, but the market outlook was still clouded by inflation data and central bank decisions. Investors will continue to monitor these factors closely to navigate the volatile market environment.