TOKYO – Stocks in Asia traded higher on Friday following a rally on Wall Street that lifted the S&P500 is within 1% of its record high.
Benchmarks rose in Tokyo, Seoul, Sydney and China, where investors focused on the release of April inflation figures.
In Japan, the Ministry of Finance reported a record current account surplus for the fiscal year through March, as strong auto exports reduced its trade deficit and the country racked up solid returns on foreign investment. However, weak consumer spending undermined this positive data.
Japan’s benchmark Nikkei 225 index rose 0.4% to 38,229.11, while Australia’s S&OP/ASX 200 rose 0.5% to 7,761.90. South Korea’s Kospi added 0.8% to 2,733.06.
Hong Kong’s Hang Seng jumped 2.1% to 18,918.54, while the Shanghai Composite rose 0.2% to 3,160.61.
Price data expected for Saturday is being watched to see if the economy could be regaining momentum.
“Despite efforts, China has been struggling with consumer deflation for about a year, presenting a formidable challenge that Beijing has yet to overcome,” said Stephen Innes, managing partner at SPI Asset Management.
On Thursday, S.&P500 rose 0.5% to 5,214.08. The Dow Jones Industrial Average rose 0.8% to 39,387.76 and the Nasdaq Composite rose 0.3% to 16,346.26.
A report showing a rebound in layoffs helped support the market. The number of workers filing for unemployment benefits rose more last week than economists expected, although it remains relatively low compared to history.
This could be a sign that the economy can perform the expected balancing act, remaining solid enough to avoid a serious recession, but not so strong that it puts upward pressure on inflation.
Equinix jumped 11.5% after reporting stronger profit for the latest quarter than analysts expected. The company, which runs data centers around the world, also said an independent investigation led by its board found no accounting inconsistencies or errors that would require financial updates. Previously, an investment company accused her of “major accounting manipulation”.
Yeti Holdings rose 12.8% after reporting better-than-expected fourth-quarter profit thanks to stronger sales of its beverageware, coolers and equipment.
The Cheesecake Factory gained 6.2% after beating earnings expectations. The results were encouraging, following some recent warnings from major food and drink companies about the pressure their customers, especially those on low incomes, are feeling.
Airbnb plunged 6.9% despite beating profit and revenue expectations. He provided a forecast range for revenue in the current quarter, the midpoint of which fell short of what analysts expected. She said an earlier Easter drew more business this year to the first quarter versus the second quarter.
In the bond market, the 10-year Treasury yield fell to 4.45% from 4.50% late on Wednesday. The two-year yield, which more closely tracks expectations for the Fed, fell to 4.81% from 4.84% late on Wednesday.
A smooth auction of 30-year Treasury bonds helped keep yields stable.
Treasury yields have largely declined since Federal Reserve Chairman Jerome Powell said last week that the central bank remains closer to cutting its key interest rate than raising it, despite a series of stubbornly high readings on inflation this year. Meanwhile, a cooler-than-expected jobs report released on Friday suggested the U.S. economy might manage to avoid being too hot or too cold.
In energy trading, US benchmark crude rose 60 cents to $79.86 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 54 cents to $84.42 a barrel.
In currency trading, the US dollar rose to 155.53 Japanese yen from 155.50 yen.
The weak yen has been both a blessing and a concern for Japan, as it helps increase export earnings but reduces purchasing power. Expectations are growing that the Bank of Japan will begin raising interest rates, although it is not yet clear how much and when. The US dollar traded at levels of 130 yen a year ago.
The euro fell to $1.0776 from $1.0782.
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