Nikkei Stock Average leads gains in Asia as regional markets end higher
On Friday, markets in the Asia-Pacific region rose, spurred by investor optimism regarding diplomatic initiatives from the United States and Iran aimed at achieving peace in the Middle East.
The Japanese Nikkei Stock Average climbed 2.68% to finish at 63,339.07, while the TOPIX index increased by 1% to 3,892.46. A noteworthy development was Japan’s core inflation rate, which fell more than analysts expected in April, hitting its lowest point since March 2022. This decline could make early interest rate hikes by the Bank of Japan less likely.
Core inflation, excluding fresh food prices, registered at 1.4%, down from the 1.7% predicted by economists and from 1.8% in March.
In South Korea, the Kospi index rose 0.41% to 7,847.71, and the Kosdaq surged nearly 5% to 1,161.13. Meanwhile, Australia’s S&P/ASX 200 also made gains, increasing by 0.41% to 8,657.
The Hong Kong market’s Hang Seng Index climbed by 0.81% during the last hour of afternoon trading; on the mainland, China’s CSI300 index grew by 1.3% to reach 4,845.1.
In India, the Nifty 50 saw a rise of 0.75%, with the BSE Sensex up by 0.8%.
Lenovo stock rises 15% in record profits as AI revenue nearly doubles
Lenovo saw its shares soar over 15% on Friday after the tech giant reported strong growth in revenue, significantly driven by its expanding artificial intelligence sector.
The group’s revenue reached $21.6 billion in the March quarter, marking a 27% increase year-on-year. It’s the highest growth rate recorded by the Hong Kong-based company in five years.
Looking forward, Lenovo has set a goal to become a $100 billion company in the next two years. Chairman and CEO Yang Yuanqing emphasized that this vision heavily relies on AI advancements.
Guzmán y Gomez stock rises by up to 20% after fast food chain announces withdrawal from US market
Shares of Guzmán y Gomez jumped by as much as 20.58% on Friday after the Mexican-themed fast food chain revealed plans to exit the U.S. market, opting instead to focus on its Australian operations.
Founder and co-CEO Stephen Marks mentioned that his recent experiences in the U.S. made it clear that the venture would require significantly more time and capital than previously anticipated. He stressed that the current results from the U.S. operations do not justify further investments of shareholders’ money.
SoftBank Group, Arm backer’s OpenAI stock soars over 11%, extending ferocious rally
SoftBank Group shares continued their upward trend for a second consecutive day, rising more than 11% on Friday. This surge gained momentum following strong earnings reports from Nvidia, which had a positive impact on AI-related stocks.
On Thursday, SoftBank’s stock rose 20%, contributing an impressive $35 billion to its market capitalization. The rally has been fueled in part by a significant increase in shares of Arm Holdings, which is mostly owned by SoftBank; Arm’s stock rose over 16% following a prior increase of more than 15%.
Asia-Pacific markets open higher as investors assess US-Iran peace deal diplomacy
Friday saw gains across Asia-Pacific markets, influenced by hopes surrounding diplomatic moves by the United States and Iran aimed at creating a Middle East peace deal.
Iran’s decision to retain its enriched uranium domestically could pose complications in negotiations with the U.S., as President Trump’s administration has emphasized the need to dismantle Iran’s nuclear program, according to reports.
The Nikkei Stock Average increased by 1.36%, while TOPIX saw a rise of 0.55%. Japan’s core inflation rate fell significantly in April, marking its lowest level since March 2022, which may weaken the Bank of Japan’s case for an early interest rate hike.
Core inflation, which excludes fresh food prices, was recorded at 1.4%, below the 1.7% forecasted by economists and the previous month’s figure of 1.8%.
South Korea’s Kospi also rose by 0.52%, with the Kosdaq witnessing a more than 3% increase. Meanwhile, Australia’s S&P/ASX 200 saw a 0.5% rise.
In Hong Kong, the Hang Seng Index increased by 0.66%, while mainland China’s CSI300 was up by 0.78%.
Good performance on Thursday
The stock market ended Thursday on a positive note, but here’s a summary of how major indices performed:
- The Dow reached a new record closing price.
- DJ Transport closed more than 17% down from its 52-week high.
- The Nasdaq Composite, Nasdaq 100, and Russell 2000 ended more than 1% below their 52-week highs.
- Both the Dow and S&P 500 finished over 1% away from their 52-week highs.
- All major indices concluded above their 50-day and 200-day moving averages.
- Every sector finished within 10% of their 52-week highs.
Stock prices move significantly after the bell
After-hours trading saw notable movements in several companies:
Estee Lauder Companies saw its stock rise by nearly 12% after confirming the termination of discussions regarding a potential merger with Puig.
Workday witnessed an 11% increase after reporting better-than-expected results and raising its full-year profit outlook.
Zoom Communications’ stock climbed 7% as investors responded positively to its latest financial outcomes.
The discount store’s shares surged nearly 7% following a positive quarterly earnings report, along with an updated profit forecast.
Take-Two Interactive shares also rose by 7% after reporting slightly higher sales and confirming that Grand Theft Auto VI remains on track for a November release.
