Asian markets experienced an uptick on Friday, spurred by gains on Wall Street following stronger-than-expected profit announcements from notable companies, including Nvidia. However, U.S. futures took a dip amid increased geopolitical tensions that saw a rise in oil prices. Notably, President Vladimir Putin confirmed the launch of a new intermediate-range ballistic missile toward Ukraine, a retaliatory action stemming from Kyiv’s recent use of American and British missiles with greater reach into Russian territory.
In Japan, the Nikkei 225 index saw a 1% rise, closing the day at 38,415.32. This increase came on the heels of inflation figures that eased to 2.3% in October, down from 2.5% in September, marking the lowest inflation rate since January. This data is likely to play a crucial role in discussions at the upcoming Bank of Japan policy meeting in December, where a potential increase in the short-term policy rate from 0.25% to 0.5% is anticipated by some investors.
Australia’s S&P/ASX 200 also climbed by 1%, reaching 8,407.50, while South Korea’s Kospi index rose by 1.2% to 2,509.06. Conversely, Hong Kong’s Hang Seng index saw a slight decline of less than 0.1%, finishing at 19,594.52, and the Shanghai Composite fell by 0.4% to close at 3,355.70.
Stateside, the S&P 500 gained 0.5% to settle at 5,948.71 after fluctuating between gains and losses throughout the trading day. The increase was largely driven by financial institutions, smaller firms, and sectors generally benefiting from robust economic conditions. The Dow Jones Industrial Average soared by 1.1% to 43,870.35, while the Nasdaq composite edged higher by less than 0.1%, reaching 18,972.42.
Nvidia’s stock increased by 0.5%, continuing its trend of surpassing profit and revenue expectations, which significantly contributed to the S&P 500’s positive performance. The company also forecasted revenue figures for the current quarter that exceeded most analysts’ predictions, driven by surging demand for its artificial intelligence-related chips. Approximately 90% of S&P 500 stocks recorded gains on Thursday, with even stronger growth noted among smaller companies. The Russell 2000 index, which focuses on smaller firms, outperformed the market with a notable 1.7% increase.
Bitcoin experienced a surge, initially hitting over $99,000 before retracting to around $98,000 by early Friday, according to market reports. The cryptocurrency has more than doubled in value this year, with a notable acceleration in its rise since Election Day. Following announcements from President-elect Donald Trump about his intention to position the U.S. as a pivotal center for cryptocurrency investments, bitcoin traded at $98,925.87 at the start of Asian trading hours.
In additional market movements, Gary Gensler, chair of the Securities and Exchange Commission, announced his planned departure in January, a development seen as beneficial for bitcoin and its investors amid the ongoing discussions about regulatory protections. Meanwhile, MicroStrategy, a company actively acquiring bitcoin, experienced fluctuations in its stock price, initially gaining 14.6% before finishing 16.2% lower for the day.
In the bond market sphere, the yield on the 10-year Treasury rose slightly to 4.43%, a minor increase from 4.41% recorded late Wednesday. This shift followed mixed signals regarding the U.S. economy, with jobless claims declining, indicating a stable job market, alongside unexpected contractions in regional manufacturing. Additionally, sales of previously owned homes demonstrated a stronger recovery than anticipated last month.
In energy markets, benchmark U.S. crude oil prices increased by 17 cents to $70.27 per barrel, while Brent crude, the global standard, added 13 cents to reach $74.36 per barrel. In currency exchange, the U.S. dollar slipped to 154.33 Japanese yen from 154.52 yen, with the euro trading marginally up at $1.0475 compared to the previous $1.0474.