Asia shares rise with US after strong tech results: Markets wrap

Most Asian equity benchmarks rose as a rebound in US shares extended into after-hours trading after a set of bumper results from tech giants.

Australian and Japanese benchmarks rallied, while Greater China shares were mixed. Korean stocks surged over 2% and are heading for their best weekly gain since 2022. Futures for US equities also climbed after both the S&P 500 Index and the tech-heavy Nasdaq 100 Index rose over 1% on Thursday.

“Oversold technicals sparking automatic buying and a positive after-hours surge in US markets” are driving the gains in Asian equities, said Manish Bhargava, a fund manager at Straits Investment Holdings in Singapore. “Algorithmic traders, programmed to react to such technical signals, are likely driving the initial upswing. This buying frenzy is being further amplified by short covering.”

In Korea, banks joined automakers and hardware tech firms in gains on the benchmark Kospi Index on expectations a regulatory push would boost valuations. The nation’s finance minister vowed to improve shareholder returns and corporate governance earlier this week.

Meanwhile, Japan’s Aozora Bank Ltd. fell as much as 19%, taking its two-day decline to over 30%, after saying that it would report its first loss in 15 years due to soured debt tied to the US commercial property market.

Nonfarm payrolls

Treasuries were steady in Asian trading after an advance Thursday that dragged the 10-year yield three basis points lower. An index of the dollar slipped, while the Australian dollar was the best performing currency among a Group-of-10 peers.

The moves in Treasuries come ahead of US nonfarm payrolls data due Friday which are expected to show a slowdown in new jobs added. Separate data released Thursday pointed to an increase in jobless claims, which suggested a softening in the labor market.

Global stocks are heading for a second week of gains as traders continue to speculate that the Federal Reserve will cut interest rates in the coming months. A vow by Chinese authorities to maintain the strength of government spending is also helping sentiment.

The Fed meeting “has given a very strong signal to the market that rates have peaked and cuts are coming,” Anitza Nip, head of Asia fixed income research at Union Bancaire Privee, told Bloomberg TV. “Our view is May or June they will start cutting and they will cut four times this year.”

The rally in Treasuries and fresh demand for gold, that pushed the price of the precious metal higher for a fourth session on Thursday, signaled further angst over US regional banks. An index of US regional financials is on pace for its worst week since May last year, during the fallout of the banking crisis. The declines came as Citizens Financial Group Inc.’s chief executive said the issues that led to the collapse of several lenders last year are largely in the past.

Elsewhere, Japanese banking giant Mizuho Financial Group is likely to report a decline in third-quarter net income when it releases earnings today. In India, financial tech giant Paytm slumped another 20%, mirroring Thursday’s decline, as JPMorgan downgraded following restriction imposed by regulators on the company’s unit.

Earlier in the US, Meta Platforms Inc rose as much as 15% in post-market trading on strong earnings. The company announced its first-ever quarterly dividend of 50 cents a share and authorized an additional $50 billion in buybacks. Amazon.com Inc. shares advanced around 9% after the bell following results that showed strong sales. The momentum outweighed a decline in Apple Inc, which unveiled a deepening slump in China despite overall sales growing.

“Some of the earnings have been great,” Max Wasserman, founder and senior portfolio manager for Miramar Capital, said on Bloomberg TV. “You’re hearing good numbers from Meta, decent numbers from Amazon — the one caveat is you’re not hearing great numbers from Apple.”

The gains for US stocks Thursday marked a rebound from the prior session, when shares fell after the Federal Reserve pushed back against the prospect of a March rate cut.

Oil halted a two-day drop. Bloomberg News reported negotiations are advancing for a deal to pause the Israel-Hamas war and free civilian hostages.

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.5% as of 1:13 p.m. Tokyo time
• Nikkei 225 futures (OSE) rose 0.9%
• Japan’s Topix rose 0.4%
• Australia’s S&P/ASX 200 rose 1.3%
• Hong Kong’s Hang Seng rose 0.6%
• The Shanghai Composite fell 0.7%
• Euro Stoxx 50 futures rose 0.9%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.0876
• The Japanese yen was little changed at 146.36 per dollar
• The offshore yuan was little changed at 7.1887 per dollar
• The Australian dollar rose 0.4% to $0.6596

Cryptocurrencies

• Bitcoin fell 0.2% to $42 996.47
• Ether fell 0.1% to $2 300.51

Bonds

• The yield on 10-year Treasuries advanced one basis point to 3.89%
• Japan’s 10-year yield declined 1.5 basis points to 0.675%
• Australia’s 10-year yield declined three basis points to 3.98%

Commodities

• West Texas Intermediate crude rose 0.4% to $74.12 a barrel
• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.