Asian stock markets experienced a positive shift on Friday morning, buoyed by a strong performance following the release of Apple’s latest earnings report, which coincided with the highly anticipated rollout of the iPhone 17. The surge in shares was particularly notable in Japan, spurred on by better-than-expected earnings from major US tech companies, including not only Apple but also Amazon.
This upward momentum in the markets is being attributed to renewed investor confidence, particularly in the field of artificial intelligence. The optimism surrounding AI has led to a historic milestone, with California-based chip designer Nvidia becoming the first-ever company to reach a market valuation of $5 trillion.
Additionally, sentiment in the markets improved following a détente in the ongoing US-China trade conflict. Leaders from both nations agreed to ease some of the punitive measures that have been affecting global supply chains and manufacturing sectors. This development represented a significant step toward mitigating some of the economic tensions that have been a concern for investors.
Despite these bullish trends, the rally showed signs of losing steam on Thursday as investors absorbed statements from US Federal Reserve Chair Jerome Powell. His remarks raised questions about the possibility of another interest rate cut in December, leading to a retreat in the three major Wall Street indices. The Nasdaq, in particular, saw the most substantial decline, dropping 1.6 percent.
In the wake of US market closures, Apple reported quarterly revenues that surpassed analysts’ expectations, largely thanks to robust sales of the iPhone and its services sector. Similarly, Amazon also released earnings that exceeded forecasts, driven by a significant uptick in demand for its cloud computing services.
In Friday’s Asian trading session, Japan’s Nikkei 225 index rose by more than 1 percent, despite a notable drop in Nissan shares, which plunged nearly 8 percent after the company projected an operating loss for the current fiscal year ending in March. The markets in Seoul, Sydney, and Taipei also posted gains.
Conversely, Hong Kong’s stock market experienced a setback, with shares of Chinese electric vehicle manufacturer BYD declining over 5 percent following a report detailing a 33-percent year-on-year drop in third-quarter profits. The Hang Seng Index in Hong Kong and the Shanghai Composite Index also faced slight declines during morning trading. HSBC analyst Yuqian Ding noted that while BYD may encounter near-term growth challenges due to ongoing price discipline and shifting government policies, its international segment remains a promising counterbalance.
The Chinese economy’s struggles were further illustrated by official data released Friday, which revealed that factory activity contracted in October for the seventh consecutive month. This signals ongoing challenges for the manufacturing sector, which is a crucial component of China’s economic landscape.
Additionally, a recent meeting between US President Donald Trump and Chinese President Xi Jinping yielded a series of key agreements. Among these was a commitment by Washington to cut certain tariffs on Chinese goods, while Beijing assured the continuation of critical rare earth supplies. However, experts caution that the meeting did not culminate in a comprehensive trade agreement, instead representing a tentative one-year truce between the world’s two leading economies.
Key figures from the trading session included a 1.2 percent rise in the Nikkei 225 to 51,959.37, while the Hang Seng Index saw a slight decline of 0.1 percent to 26,254.83, and the Shanghai Composite fell 0.2 percent to 3,978.84. Oil prices also reflected this mixed sentiment, with West Texas Intermediate dropping 0.5 percent to $60.27 per barrel, and Brent North Sea Crude down 0.4 percent to $64.72 per barrel. Currency movements showed the euro rising to $1.1574, while the pound strengthened against the dollar to $1.3156. The dollar weakened against the yen, trading at 153.76.
