Asian markets recorded gains at the close of trading on Friday, April 25, in the closing session of the week, supported by Wall Street’s gains for the third consecutive session. The gains were supported by the technology sector following better-than-expected results from Alphabet, software company ServiceNow, and its artificial intelligence-powered products, in addition to statements from US Federal Reserve members supporting interest rate cuts. In a related development, data released from the Japanese capital, Tokyo, this morning showed that core inflation accelerated in April. The core index in the capital rose to 3.4%, compared to 2.4% in March, accelerating growth for the second consecutive month. The index, which excludes volatile fresh food costs, rose to 3.2%, exceeding market expectations.
The Nikkei index closed the session at 35,705 points, up 1.90%, or 666 points. The Topix index of the Tokyo Stock Exchange rose today by approximately 1.37%, closing at 2,628 points. Nidec and JTEKT led the Nikkei gains, rising 12% and 8%, respectively.
Shares of Advantest, a Japanese chip company, rose more than 4% today after the company announced that it expects its operating profit to grow by 6%, driven by demand for chip testing tools used in artificial intelligence tasks. Chinese indices registered gains today, with the exception of the Shanghai Composite Index, where the broader CSI300 index rose by approximately 0.07% to close at 3,786 points, while the Shanghai Composite Index closed down by 0.07% at 3,295.
A report issued this morning by Bloomberg indicated that the Chinese government is considering suspending 125% tariffs on some US imports, as the economic costs of the trade war are weighing heavily on some industries, most notably equipment and industrial chemicals. This boosted investor optimism and supported stock markets in Asia.
The Hang Seng Index, the main index of the Hong Kong Stock Exchange, rose by approximately 0.32% to close at 21,980 points, with the technology sector leading the index’s gains after reports revealed that some US-made chips had been exempted from tariffs. Shares of Lenovo Group and Chinese search engine Baidu led the index’s gains, rising more than 4.50%. In contrast, the South Korean Kospi index rose by 0.95% in today’s session, closing at 2,546 points. South Korea called for calm and orderly discussions with the United States on trade issues, as reports indicated that Asia’s fourth-largest economy is seeking to reach an agreement with the United States before the 90-day tariff suspension deadline expires in July.