Stock market today: Asian shares dip as Wall Street posts second record high in a week on easing geopolitical risk
Despite Friday’s pullback, Asian stock markets remained on course for weekly gains
Asian stock markets declined on Friday but remained set for a second consecutive week of solid gains as investors reduced risk exposure ahead of a pivotal weekend that could shape prospects for a near-term de-escalation in the Middle East conflict.
A 10-day ceasefire between Lebanon and Israel came into effect on Thursday, and U.S. President Donald Trump indicated that the next U.S.-Iran talks could be held over the weekend, when the current ceasefire arrangement is scheduled to expire.
Tech-heavy indices drive surge amid AI-led earnings growth
Asian stock markets were buoyed by positive signals from Wall Street, where both the S&P 500 and the Nasdaq Composite ended Thursday’s session at record highs for a second straight day, supported by declining geopolitical tensions.
Meanwhile, U.S. stock index futures showed little movement during Asian trading hours.
Investors have rapidly adopted a more optimistic stance on any indications of de-escalation this month, despite the continued closure of the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of global oil and gas shipments normally pass.
This has helped keep oil prices under the $100-per-barrel mark, although they still remain elevated compared with pre-war levels. Brent crude futures declined by over 1 percent to $98.14 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 1.6 percent to $93.15 a barrel on Friday.
Despite Friday’s pullback, Asian stock markets remained on course for weekly gains. Japan’s Nikkei 225 declined 1.07 percent, though it was still headed for a 3.5 percent rise over the week after reaching a record high of 59,719 points on Thursday. The broader TOPIX index also slipped, falling 1.01 percent on Friday.
In South Korea, the KOSPI edged down 0.44 percent, but continued to track a strong weekly advance of around 6 percent.
Technology-heavy indices drove much of the week’s upward momentum, mirroring a robust rally on Wall Street fueled by optimism over artificial intelligence-led earnings growth. South Korea’s SK Hynix was set for a weekly gain of more than 10 percent, reaching record highs midweek.
Sentiment in the sector was further strengthened by strong results from Taiwan Semiconductor Manufacturing Co (TSMC), which on Thursday reported a roughly 58 percent surge in quarterly profit to a record level, driven by accelerating global demand for AI processors.
Chinese shares set for strong weekly gain on economic growth
In the Chinese stock market, the Shanghai Composite and Hong Kong’s Hang Seng indices were each on track to post weekly gains of about 1.5 percent, despite modest declines on Friday.
Economic data released on Thursday pointed to a solid start to the year for China’s economy. The world’s second-largest economy expanded 5 percent year-on-year in the first quarter, surpassing expectations and improving from 4.5 percent in the previous quarter, while quarterly growth registered at 1.3 percent.
Elsewhere in Asia, India’s Nifty 50 was set for a weekly gain of 0.6 percent, while Singapore’s Straits Times Index also edged toward slight weekly advances.
In contrast, Australia’s S&P/ASX 200 fell 0.4 percent on Friday and was on course for a 0.5 percent weekly decline, diverging from the broader regional uptrend.
U.S. dollar hovers near lowest level since March 2
Amid a strong stock market rally, the U.S. dollar, which benefited from safe-haven demand in March, has since surrendered those gains. The euro was last trading at $1.1779, slightly below the seven-week peak reached in the prior session.
The dollar index, which tracks the greenback against a basket of major currencies including the yen and the euro, stood at 98.24, hovering near its lowest level since March 2. The index has fallen for eight consecutive sessions through Wednesday.
The risk-sensitive Australian dollar traded at $0.7163, holding close to a four-year high reached on Thursday.
Meanwhile, the Japanese yen weakened slightly to 159.40 per dollar after Bank of Japan Governor Kazuo Ueda avoided signaling an imminent rate hike. His comments left markets uncertain about the timing of the next policy move, prompting traders to scale back expectations of a rate increase at the BOJ’s April 27-28 meeting.
