Asian markets showed mixed results in cautious trading on Wednesday, with most regional benchmarks climbing after U.S. stocks hit new record highs. U.S. futures rose while oil prices slipped.
Tokyo’s Nikkei 225 declined by 0.6% to 38,719.35 after Japan reported a rise in its trade deficit, driven by increasing import costs that outpaced an 8% rise in exports from the previous year. This data was weaker than analysts had predicted.
Hong Kong’s Hang Seng index increased by 0.4% to 19,288.93, led by electric vehicle makers like Xpeng, whose shares surged 13.5% on better-than-expected first-quarter earnings.
The Shanghai Composite index recorded modest gains, rising less than 0.1% to 3,158.64.
In South Korea, the Kospi edged up 0.1% to 2,726.35, while Australia’s S&P/ASX 200 saw a similar increase, rising less than 0.1% to 7,855.00.
Taiwan’s Taiex advanced by 1.2%, with shares of market leader Taiwan Semiconductor Manufacturing Co. jumping 2.1%.
Markets in Thailand were closed for a public holiday.
On Tuesday, the S&P 500 rose by 0.3% to 5,321.41, surpassing its previous record set last week. The Nasdaq composite increased by 0.2% to 16,832.62, a day after setting a new all-time high. The Dow Jones Industrial Average climbed by 0.2% to 39,872.99, remaining just below its record high from last week. These indexes have recently reached new highs largely due to expectations that the Federal Reserve will cut interest rates later this year as inflation cools. Additionally, strong profit reports from major U.S. companies have bolstered the market.
Macy’s joined other companies in reporting stronger-than-expected profits for the latest quarter, leading its stock to rise by 5.1% after some initial fluctuations.
Lam Research contributed to market support by announcing a $10 billion stock buyback program and a 10-for-1 stock split, which would lower each share’s price and make them more accessible to investors. Its stock rose by 2.3%.
These gains helped offset a 3.7% drop for Palo Alto Networks. Although the cybersecurity company reported better-than-expected profits, its forecasted revenue range for the current quarter fell slightly below analysts’ expectations.
Trump Media & Technology Group, the parent company of Donald Trump’s Truth Social network, saw its stock plunge by 8.7% after reporting a net loss of $327.6 million in its first quarterly report as a publicly traded company.
Lowe’s shares fell by 1.9% despite reporting better-than-expected quarterly results. The company maintained its revenue forecast for the year, anticipating a decline of up to 3% in a key sales figure due to high interest rates affecting customer activity.
Higher rates for mortgages, credit cards, and other payments have become more expensive as the Federal Reserve keeps its main interest rate at its highest level in over two decades. The Fed aims to control inflation without causing a recession by maintaining these high rates.
This week lacks significant economic reports, with market movements likely to be driven by upcoming profit announcements.
Nvidia, whose stock has soared amid the excitement around artificial intelligence technology, is set to report its latest quarterly results on Wednesday. Expectations are high.
Target and Ross Stores are also scheduled to report later in the week, potentially providing more insights into U.S. consumer spending trends, especially among lower-income households facing high inflation.
In other trading, benchmark U.S. crude fell by 61 cents to $78.05 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, declined by 64 cents to $82.24 a barrel.
The U.S. dollar edged up to 156.30 Japanese yen from 156.16 yen, while the euro remained nearly unchanged at $1.0856.
