Apple’s recent earnings report, coinciding with the launch of its highly anticipated iPhone 17, significantly contributed to a positive trend in Asian stock markets on Friday. Across the region, investor sentiment was largely bolstered by strong financial results from prominent US technology corporations, including Apple and Amazon, as well as a developing sense of optimism surrounding the global economic landscape. These developments fueled a sustained rally witnessed earlier in the week, where Nvidia achieved the historic milestone of becoming the first publicly traded company to surpass the $5 trillion market capitalization valuation. Simultaneously, a notable shift in the long-standing US-China trade dispute provided further support, with leaders from both nations agreeing on Thursday to implement measures designed to alleviate disruptions within global supply chains and manufacturing sectors – a move widely seen as a step towards restoring stability.
However, this encouraging momentum faced a significant test on Thursday, as investors responded to cautious commentary delivered by Federal Reserve Chair Jerome Powell. Powell’s remarks tempered expectations for a forthcoming interest rate reduction in December, leading to a substantial pullback in major Wall Street indices. The Nasdaq Composite experienced the most pronounced decline, dropping by 1.6 percent, while the Dow Jones Industrial Average and S&P 500 also recorded declines. The market’s reaction underscored a growing concern regarding the pace of economic growth and the potential for persistent inflationary pressures.
Following the close of US markets, Apple unveiled its quarterly earnings figures, reporting revenues that surpassed analyst estimates. A key driver of this success was the robust performance of the iPhone business, alongside strong growth in Apple’s services segment. Amazon’s own financial results mirrored this positive trend, with the company announcing earnings that also exceeded expectations, primarily fueled by surging demand for its cloud computing services – Amazon Web Services (AWS). These combined reports contributed significantly to the positive sentiment observed across Asian markets.
On Friday morning trading, Tokyo’s Nikkei 225 index rallied by over one percent, reflecting sustained confidence in the region’s economic outlook. Similarly, Seoul’s KOSPI and Sydney’s ASX 200 indices also experienced upward momentum. The gains in Japan were somewhat tempered, however, by a sharp decline of nearly eight percent in Nissan shares, following the automaker’s announcement of anticipated operating losses for its current fiscal year ending in March. This drop highlighted ongoing challenges within the automotive industry, particularly related to production costs and market conditions.
Hong Kong’s stock exchange benchmarks also showed mixed performance Friday morning, with shares of Chinese electric vehicle powerhouse BYD falling by more than five percent after Thursday’s reported 33-percent year-on-year slump in the company’s third-quarter profit. Analysts cautioned that BYD’s near-term domestic growth may face headwinds due to ongoing price discipline initiatives and evolving government policies. Despite these concerns, HSBC analyst Yuqian Ding noted that BYD’s international segment offers a substantial counterbalancing force, providing the company with significant growth potential in overseas markets.
Furthermore, economic data released on Friday painted a picture of continued contraction within China’s manufacturing sector. Factory activity in China shrank for the seventh consecutive month in October, reflecting challenges stemming from a combination of factors, including weakened domestic demand and ongoing regulatory pressures. The leaders of the United States and China engaged in a pivotal meeting on Thursday, resulting in several key agreements that had been previously anticipated by economic observers. Among the commitments were Washington’s willingness to reduce certain tariffs on Chinese goods, and Beijing’s commitment to maintain the flow of critical rare earth elements to global manufacturers. While President Donald Trump and Xi Jinping have not yet formally signed a comprehensive trade agreement, experts characterize this meeting as a tentative one-year truce in the protracted US-China trade war.
As of 0230 GMT Friday, key market indicators presented the following snapshot: Tokyo – Nikkei 225: UP 1.2 percent at 51,959.37; Hong Kong – Hang Seng Index: DOWN 0.1 percent at 26,254.83; Shanghai – Composite: DOWN 0.2 percent at 3,978.84; West Texas Intermediate: DOWN 0.5 percent at $60.27 per barrel; Brent North Sea Crude: DOWN 0.4 percent at $64.72 per barrel; Euro/dollar: UP at $1.1574 from $1.1564 on Thursday; Pound/dollar: UP at $1.3156 from $1.3142; Dollar/yen: DOWN at 153.76 yen from 154.06 yen; Euro/pound: DOWN at 87.97 from 87.98 pence; Dollar/yen: DOWN at 153.76 yen from 154.06 yen; Euro/pound: DOWN at 87.97 from 87.98 pence.
