Asian shares surged on Friday amid positive market sentiment driven by improved corporate earnings and Japan’s first yen-buying intervention in two years. Apple topped expectations with strong sales forecasts but warned of potential chip supply constraints, leading to a 2.7% rise in its stock.
This rally was mirrored across the tech sector as both Caterpillar and Alphabet outperformed estimates, adding to gains of 10% each. The S&P 500 climbed more than 10% for April, while Nasdaq surged by 15%, marking its best performance since 2020.
Market holidays dampened reactions in Asia on Friday, with the Nikkei up 0.6% and Australian shares rising 0.9%. MSCI’s broadest index of Asia-Pacific shares outside Japan edged higher by 0.3%.
Despite these gains, concerns over energy prices remain high as Asia imports most of its oil and gas through the Strait of Hormuz. Brent crude steadied at $111.70 a barrel after hitting a four-year peak of $126.41 on Thursday.
Japanese authorities intervened in currency markets for the first time in two years by selling dollars to buy yen, initially pushing the greenback down five yen to 155.50. The dollar rebounded to 157.29 on Friday, indicating potential further intervention if needed to hold it above 160.00.
This move also bolstered the euro and pound as central banks signaled hawkish policies amid rising energy costs. The Bank of England warned that rate hikes could follow if energy prices continue climbing, while European Central Bank President Christine Lagarde noted ongoing debates on future rate decisions.
The Federal Reserve’s recent hawkish stance reinforced expectations for back-to-back rate hikes in June and July, with US 10-year Treasury yields up to 4.390%. Gold remained flat at $4,612 an ounce amid tight trading conditions.