TOKYO (AP) — Following a Wall Street rally fueled by strong corporate earnings reports, Asian shares traded mostly higher on Thursday. Japan’s Nikkei 225 rose nearly 0.2% in early trading to reach 38,888.04, while Australia’s S&P/ASX 200 surged 1.1% to hit 8,507.60. South Korea’s Kospi also inched up by 0.7% to 2,526.21. Hong Kong’s Hang Seng saw a 0.2% increase to 20,640.73, and the Shanghai Composite added 0.6% to 3,248.34.In Japan, Honda Motor Co. stock, which had surged the day prior following reports of discussions about establishing a joint holding company with rival Nissan Motor Corp., saw some of those gains retract. On the other hand, Nissan shares rebounded to trade higher. While media reports continued on Thursday, neither company provided immediate confirmation.On Wall Street, the S&P 500 climbed by 0.4%, with the Dow Jones Industrial Average adding 317 points (0.7%) and the Nasdaq composite gaining 0.2%.Mattel experienced a 15.3% surge after surpassing profit expectations for the latest quarter. Its Hot Wheels brand helped offset weaknesses in Barbie and other dolls, with the company also offering a profit forecast for the upcoming year that exceeded analysts’ projections.Amgen surged 6.5%, contributing significantly to the S&P 500’s upward momentum. The company reported stronger-than-expected profit for the latest quarter, driven in part by growth in its Repatha medicine, known for lowering bad cholesterol and reducing heart attack risk.Despite beating profit expectations for the latest quarter, Advanced Micro Devices saw a 6.3% decline in its stock price. Analysts praised AMD’s results as solid but expressed concerns over the lack of detailed expectations from CEO Lisa Su regarding the performance of its AI offerings.Sentiments in the market remain uncertain due to tariffs imposed by President Donald Trump, with worries of a potential global trade war easing slightly after temporary tariff reprieves for Mexico and Canada. This has raised hopes among traders that tariffs may be used as a negotiation tool rather than a long-term policy. However, concerns persist over tariffs on Chinese goods and potential future moves impacting autos from the European Union.Uncertainty surrounding inflation is also impacting Wall Street, with fears that rising inflation could deter the Fed from further interest rate cuts this year. Bond yields fell following reports of weaker growth in U.S. services businesses, pointing to potential challenges ahead.
An economist’s projection was met with surprising outcomes as a recent survey conducted by the Institute for Supply Management revealed that numerous businesses were attributing their challenges to adverse weather conditions. The yield on the 10-year Treasury note dropped to 4.42% from the previous day’s rate of 4.52% reported late on Tuesday. Reflecting these shifts, the S&P 500 index surged by 23.60 points to close at 6,061.48. Similarly, the Dow Jones Industrial Average climbed by 317.24 points, reaching 44,873.28, while the Nasdaq composite index saw an increase of 38.31 points, closing at 19,692.33.
Turning to the energy sector, benchmark U.S. crude oil prices edged up by 19 cents, settling at $71.22 per barrel. Meanwhile, Brent crude, the international price standard, saw a modest increase of 11 cents, reaching $74.72 per barrel. In the realm of currency trading, the U.S. dollar experienced a slight dip against the Japanese yen, falling to 152.23 yen from the previous rate of 152.55 yen. Likewise, the euro’s value decreased to $1.0394 from $1.0407.
This detailed market report was enhanced by the valuable contributions of AP Business Writer Stan Choe.
