Asian stock markets aimed for a second consecutive week of increases on Friday, while the dollar saw its first weekly rise in over a month as investors concentrated on indications that the U.S. and China were ready to retreat from their trade conflict. U.S. futures were climbing as tech giant Alphabet (GOOGL.O), the parent of Google, surpassed profit forecasts and reiterated its AI investment goals, causing its stock to rise by almost 5 per cent in after-hours trading and uplifting other companies. European futures increased by 0.6 per cent, and FTSE futures gained 0.2 per cent. During the night on Wall Street, investors dismissed a variety of corporate earnings, and the S&P 500 (.SPX) increased by 2 per cent.
The dollar, which has suffered during tumultuous weeks of tariff changes, withdrawals, and an exodus from U.S. assets, has stabilised at about $1.1330 per euro and 143.6 Japanese yen. Eli Lee, chief investment strategist at the Bank of Singapore, stated, "We probably have surpassed the highest point concerning threatened tariff rates." "Regarding the U.S.-China standoff, both parties have signalled they would maintain rates at existing levels." Tit-for-tat tariffs initiated by U.S. President Donald Trump's declaration of significant import taxes on April 2 have put trade between the two largest economies at risk and sparked worries about a decline in global growth. This week, the U.S. changed its stance and stated that the situation was untenable, while China is contemplating exempting certain U.S. imports from its 125 per cent tariffs, marking the clearest indication so far of Beijing's worries regarding the economic repercussions.
In Hong Kong, the Hang Seng (.HSI) increased by 1 per cent, with minor gains for mainland China's Shanghai Composite (.SSEC) and blue-chip stocks. In Japan, the Nikkei increased by 1.8 per cent on Friday and has recovered all its declines following Trump's announcement of the highest U.S. tariffs in a century, tariffs he mostly paused, apart from China and a baseline tariff of 10 per cent. "Market participants likely sense that they have regained a degree of 'control' over the U.S. government and can potentially influence a more accommodating stance on important issues," stated ING currency strategist Francesco Pesole in a client note. "Investors will look for validation of the more positive outlook on U.S. assets to support additional dollar increases," it said.
ALSO READ: India Poised for Bilateral Trade Deal Amid Tariff Threat: US Treasury Secretary
The U.S. dollar index increased by 0.5 per cent over the week, reaching 99.751. Markets in Australia and New Zealand were shut due to a public holiday. There were numerous indications that the apparent tranquillity of the markets might not endure for long. Procter & Gamble, PepsiCo, Chipotle Mexican Grill, and American Airlines all reduced or retracted their forecasts overnight due to heightened uncertainty among consumers. Colgate-Palmolive is set to report prior to the U.S. market opening on Friday, while earnings from China's BYD, Ping An, and Tokyo's chip-testing equipment manufacturer Advantest are anticipated after the Asian market closes.
Gold remained steady at $3,349 per ounce, and analysts at Phillip Securities in Singapore highlighted that the Gold/S&P 500 ratio, which reflects investors' pessimism, reached its peak since the bear market triggered by the pandemic in 2020. The U.S. Treasury market experienced reduced pressure after a significant sell-off due to Trump's tariff actions, which shook confidence in U.S. leadership and assets, with 10-year yields remaining stable at 4.30 per cent on Friday. Japanese yields increased across the curve following a Tokyo inflation report that was hotter than anticipated.
FIRST Business Portal addressing the potential of business capability of North East Region.
