Asian Stock Markets Rise: Power of Technology

A General Rise is Observed in Asian Stock Markets

Asian stock markets mostly showed an increase on Friday morning. In particular, Japanese stocks surged following better-than-expected earnings reports from U.S. tech giants Apple and Amazon.

Investor confidence in artificial intelligence triggered a rally in global stock markets this week. Nvidia became the first company to reach a $5 trillion market value.

The atmosphere became even more positive as a softening of negotiations related to the trade war between the U.S. and China was achieved, with top leaders agreeing to withdraw punitive measures impacting international supply chains and the manufacturing sector.

However, this rise began to lose steam on Friday following statements from U.S. Federal Reserve Chair Jerome Powell the day before, which raised doubts about another rate cut in December. Wall Street's three main indices retreated, with the Nasdaq showing the largest decline at 1.6%.

After U.S. markets closed, Apple's quarterly earnings report, which came in better than expected, was supported by iPhone and services revenues. Amazon also reported better-than-expected earnings, bolstered by increased demand for its cloud computing services.

In Asian trading on Friday morning, Tokyo's main index rose by 1.2%, reaching 51,959.37 points, with increases also observed in Seoul, Sydney, and Taipei.

The rise in Japan occurred despite the automotive giant Nissan announcing it expects operating losses for the current fiscal year. In Hong Kong, shares of the Chinese electric vehicle manufacturer BYD fell by more than 5% after it reported a 33% decline in third-quarter profit compared to last year.

The stock indices in Hong Kong and Shanghai recorded slight declines on Friday morning. HSBC analyst Yuqian Ding noted in a report that BYD's short-term domestic market growth could be affected by ongoing price discipline and emerging government policies, but the international segment provides a strong balance.

Challenges in the Chinese economy were further highlighted by official data showing a contraction in factory activity for the seventh consecutive month in October.

During a summit on Thursday between U.S. President Donald Trump and Chinese President Xi Jinping, observers noted some expected key agreements. Washington agreed to lower some tariffs on Chinese goods, while Beijing committed to continue ensuring the supply of critical rare earth elements.

Trump and Xi did not sign a comprehensive trade agreement, and experts suggest that the meeting signifies a temporary year-long ceasefire in the trade war between the world's two largest economies.

Tokyo - Nikkei 225: up 1.2% at 51,959.37

Hong Kong - Hang Seng Index: down 0.1% at 26,254.83

Shanghai - Composite: down 0.2% at 3,978.84

West Texas Intermediate: down 0.5% at $60.27

Brent Crude Oil: down 0.4% at $64.72

Euro/dollar: up 0.09% at $1.1574

Pound/dollar: up 0.1% at $1.3156

Dollar/yen: down 0.19% at 153.76 yen

Euro/pound: down 0.01% at 87.97 pence

New York - Dow: down 0.2% at 47,522.12

London - FTSE 100: unchanged at 9,760.06