Market Update: Asian Stocks Rise as US Trade Deal Signed
MANILA, Philippines (AP) — On Friday, Asian markets were buoyed by the prospect of US stocks approaching a new high. US futures and crude oil prices also saw minor gains.
Investors are closely watching developments after President Donald Trump announced a trade agreement between the US and China. Commerce Secretary Howard Lutnick mentioned in an interview that the deal was signed two days prior, though he withheld specific details, remarking, “The president likes to close these deals on his own.”
While some concerns regarding Trump’s proposed higher tariffs have eased since their announcement in April, they remain. There’s ongoing uncertainty about how much tariffs will rise, their potential impact on the economy, and the likelihood of increased inflation.
Hong Kong’s Hang Seng index showed little change, resting at 24,333.43, whereas Shanghai’s composite index dipped slightly to 3,441.30, down 0.2%.
In contrast, Tokyo’s Nikkei 225 Index experienced a notable increase, rising 1.6% to 40,215.36, following reports of modestly eased consumer prices in May. South Korea’s Kospi Composite Index, however, fell 0.7% to 3,050.01.
After the Israeli-Iran conflict and its aftermath, markets seem to be stabilizing.
On Thursday, the S&P 500 climbed 0.8% to 6,141.02, just shy of its all-time high set in February. At one point, it crossed that mark, a significant milestone for many 401(k) accounts. It had previously dropped nearly 20% from that record amidst concerns over Trump’s tariffs.
The Dow Jones Industrial Average gained 0.9%, reaching 43,386.84, while the NASDAQ composite rose by 1% to 20,167.91. Recent reports bolstered the notion that the US economy is enduring, albeit slowly, despite challenges like tariffs. Notably, orders for long-lasting manufactured goods exceeded economists’ expectations last month, along with a decrease in unemployment benefits claims, hinting at fewer layoffs.
Another report indicated that the US economy contracted more than earlier estimates suggested for the first quarter of 2025. However, many economists believe this may have been influenced by a spike in imports as businesses preempted tariffs. There’s cautious optimism regarding performance in the upcoming months.
Following this data, the Treasury fluctuated in the bond market before stabilizing. The yield fell to 4.24% from 4.29% in the latter part of Wednesday, while the two-year financial yield declined from 3.74% to 3.71%.
Analysts speculated that yields might have been affected by rumors that Trump could soon announce candidates to replace Federal Reserve Chairman Jerome Powell, potentially undermining confidence in the Fed’s decision-making amid inflation concerns.
On Wall Street, spice producer McCormick saw its stock surge 5.3% after it projected annual profits exceeding analyst expectations, factoring in measures to combat rising costs due to tariffs.
Long-term trends indicate that tech stocks have thrived since the S&P 500’s low in April. Chipmaker Nvidia, benefitting from excitement surrounding artificial intelligence technology, rose 0.5% and has skyrocketed 61% since April 8, becoming the most valuable company on the US stock market. Another AI-focused company, Super Microcomputer, jumped 5.7%, marking a 55% increase since that date.
In early trading on Friday, US benchmark crude oil prices rose by 35 cents to $65.59 a barrel, while international Brent Crude increased by 36 cents to $67.05 a barrel.
The US dollar fluctuated, going from 144.40 yen to 144.45, while the euro dipped slightly from $1.1703 to $1.1699.
