Asian Stock Markets Rise! Japanese Stocks Stand Out.

Asian stock markets showed a mostly upward trend on Friday morning. The rise in Japanese stocks occurred after better-than-expected earnings reports from American tech giants such as Apple and Amazon.

Investors' expectations regarding artificial intelligence triggered a significant rally in stock markets worldwide this week. During this process, California-based chip designer Nvidia became the first company in history to reach a market value of $5 trillion.

Market sentiment was further strengthened by a perceived easing of tensions in the US-China trade war. The top leaders of the two countries agreed to withdraw punitive measures that had affected international supply chains and the manufacturing sector.

However, as of Friday, there were signs of certain weaknesses in this rise. Investors evaluated the statements made by Jerome Powell, the Chair of the US Federal Reserve, earlier that day, bringing uncertainties about a potential interest rate cut in December.

Wall Street's three main indices fell, with Nasdaq showing the largest decline at 1.6%.

After the US markets closed, Apple’s quarterly earnings report exceeded expectations due to an increase in iPhone and service revenues. Amazon also reported better-than-expected earnings due to rising demand for cloud computing services.

In Asian trading on Friday morning, Tokyo’s main index rose by over one percent, while Seoul, Sydney, and Taipei also recorded increases. Japan showed gains despite a sharp decline of around eight percent in Nissan shares, which announced it expects operational losses within the current fiscal year.

In Hong Kong, shares of the Chinese electric vehicle giant BYD fell more than five percent following a report showing a year-on-year drop of 33% in third-quarter profits.

Hong Kong and Shanghai stock indices experienced slight declines on Friday morning. HSBC analyst Yuqian Ding stated that BYD’s short-term local growth could be negatively impacted by ongoing price discipline and evolving government policies, but added that the international market provides a solid balance.

The challenges in the Chinese economy became more evident as official data showed industrial activity had contracted for the seventh consecutive month in October.

Key agreements observed during the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping included Washington's acceptance of a reduction in tariffs on some Chinese goods and Beijing's commitment to continue supplying critical rare earth elements.

Trump and Xi have not yet signed a comprehensive trade agreement, and experts view this meeting as a temporary reprieve in the trade war between the world's two largest economies.