Tokyo, April 26, 2024: The majority of Asian markets rose on Friday, with gains in Microsoft and Alphabet boosting technology stocks. Japanese stocks, however, were mixed after mixed signals from the Bank of Japan.
Tech sector drives markets higher: Investors were encouraged by strong gains from US tech giants such as Microsoft and Alphabet, leading to gains in tech stocks across Asia. South Korea’s KOSPI rose 1%, while Hong Kong’s Hang Seng added 2%. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes gained 0.8% and 0.6%, respectively.
Japan impacted by BOJ: The Bank of Japan kept interest rates steady as expected, but lowered its growth forecast for the Japanese economy. The weaker growth forecast and softer-than-expected inflation data from Tokyo raised doubts about how much room the BOJ has to further raise interest rates. This led to a mixed performance for Japanese stocks, with the Nikkei 225 rising 0.7%, while the TOPIX gained 1%.
Other markets: India’s Nifty 50 rose slightly, while Australia’s ASX 200 fell 1.3%. Oil stocks rose as oil prices gained, with CNOOC Ltd posting higher-than-expected quarterly earnings. While rising producer price inflation in Australia weighed down Australian stocks, signaling expectations of higher interest rates, traders in Indian markets are concerned about volatility due to the ongoing 2024 general elections.
In conclusion, Friday’s gains in Asian stocks were largely positive, with Microsoft and Alphabet helping to support the technology sector. However, investors are still watching for further monetary policy and inflation cues, with Japanese stocks impacted by mixed signals from the Bank of Japan.
