Asian stock markets experienced broad gains on Thursday, buoyed by a significant rally in the U.S. following strong earnings announcements from key companies.
In Japan, the Nikkei 225 index appreciated by nearly 0.5%, reaching 39,020.16 during afternoon trading. Meanwhile, Australia’s S&P/ASX 200 index surged by 1.2% to 8,520.70. South Korea’s Kospi climbed 0.7%, landing at 2,526.87, while Hong Kong’s Hang Seng moved up by 0.8% to 20,753.87. Additionally, the Shanghai Composite added 1.0%, closing at 3,260.49.
In Japan, Honda Motor Co. saw its stock value fluctuate after it rose significantly earlier this week due to speculative reports of a potential split in its partnership with Nissan Motor Corp.. Despite these media reports continuing, neither company has confirmed any developments. Nissan shares, on the other hand, experienced a small recovery, trading higher.
In New York, major indexes also enjoyed gains; the S&P 500 increased by 0.4%, while the Dow Jones Industrial Average saw an uptick of 317 points, around 0.7%. The Nasdaq composite added 0.2% to its tally.
Toymaker Mattel experienced a remarkable 15.3% surge after exceeding analysts’ expectations for quarterly profits. The company’s strong performance was attributed primarily to its Hot Wheels brand, offsetting some declines in sales of Barbie dolls. Furthermore, Mattel provided an optimistic profit forecast for the upcoming year that surpassed market expectations.
Amgen reported a 6.5% increase in its stock following better-than-anticipated profits, largely driven by an uptick in sales of its Repatha medication, which helps lower bad cholesterol and mitigate heart attack risks. These gains helped balance some downturns in the market, including a notable 7.3% fall for Alphabet. Despite exceeding profit forecasts, the tech giant faced criticism from investors due to slower growth in its cloud division, whose revenue projections did not meet estimates. Alphabet’s plan to allocate $75 billion towards investments this year—around $15 billion more than analysts had predicted—also raised eyebrows as the company pushes to enhance its artificial intelligence initiatives.
Advanced Micro Devices stumbled 6.3%, despite posting solid earnings that beat expectations. Analysts expressed concern over the lack of detailed projections regarding the company’s AI offerings from CEO Lisa Su.
Concerns surrounding the global economy continued, particularly due to tariffs implemented by former President Donald Trump. After causing significant market turmoil earlier in the week, fears of a potential global trade war were somewhat alleviated following Trump’s decision to grant 30-day exemptions for tariffs on goods imported from Canada and Mexico. This decision fostered optimism that Trump views tariffs as a strategic negotiation tool rather than a long-term policy.
Trump has persistently advanced tariffs on Chinese imports, and reports suggest potential future tariffs could affect European Union vehicle imports. Experts warn that these measures could trigger inflationary pressures, forecasting that key inflation indicators might reach 2.6% by December—above the Federal Reserve’s ideal target of 2%.
One primary concern weighing on traders is that rising inflation could hinder the Federal Reserve’s ability to cut interest rates, following its initial rate cuts in September aimed at sustaining economic growth and supporting the job market.
In bond market movements, yields saw a drop on Wednesday after a report revealed that growth across U.S. services sectors, including mining and finance, was weaker than anticipated. The Institute for Supply Management’s assessment highlighted that several businesses experienced downturns due to adverse weather.
The 10-year Treasury yield fell to 4.42% from the previous day’s 4.52%. In conclusion, the S&P 500 climbed by 23.60 points to close at 6,061.48, while the Dow Jones Industrial Average rose by 317.24 to 44,873.28, and the Nasdaq composite improved by 38.31 to settle at 19,692.33.
In the energy market, benchmark U.S. crude prices rose by 25 cents to $71.28 a barrel, while Brent crude, the international standard, increased by 20 cents to reach $74.81 per barrel.
On the currency exchange, the U.S. dollar fell slightly to 152.42 Japanese yen from 152.55 yen, and the euro was priced at $1.0391, decreasing from $1.0407.
