Asian stock markets made an uneven recovery on Friday, with Japan’s broadest stock index hitting a record high on the back of strong corporate earnings and growing expectations that the U.S. will remove overlapping tariffs on Japanese goods.
However, losses in Hong Kong, South Korea and Australia highlighted lingering investor caution after a Wall Street pullback, as traders assessed how upcoming appointments to the U.S. Federal Reserve could shape the central bank’s policy path.
Strong earnings lift Asian market
In the Asian stock market, Japan’s Nikkei 225 rose 1.70 percent as of 6:31 GMT, while the Topix index climbed 1.08 percent to a new record high, trading above 3,000 for the first time. Meanwhile, U.S. stock futures, the S&P 500 e-minis, were up 0.16 percent, while Nasdaq futures rose 0.17 percent, on track to extend gains into a third day.
SoftBank Group shares surged as much as 11 percent after the tech investment giant posted a return to profit in the first quarter, while Sony Group climbed 6 percent, extending Thursday’s earnings-driven 4.1 percent gain.
In contrast, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.59 percent, dragged lower by Hong Kong, as regional sentiment weakened following mild losses on Wall Street after U.S. stocks came close to a one-week high.
Hong Kong’s Hang Seng Index fell 0.89 percent, with technology shares leading declines, while China’s blue-chip CSI 300 index fell 0.19 percent. Australian stocks were 0.28 percent lower, and Korea’s Kospi fell 0.63 percent.
Gold futures surge to record high
U.S. President Donald Trump announced on Thursday that he would nominate Council of Economic Advisers Chairman Stephen Miran to temporarily fill a vacant seat at the Federal Reserve, while the administration works to secure a permanent appointment to the central bank’s governing board and continues its search for a new Fed chair.
Stock markets are also weighing reports indicating that Fed Governor Christopher Waller has emerged as the leading contender to succeed current Chair Jerome Powell, whose term concludes on May 15, 2026.
Gold futures also surged to a record high following a report that the United States had imposed tariffs on imports of 1-kilogram gold bars, which make up the majority of Switzerland’s bullion exports to the U.S., according to a letter from Customs and Border Protection.
Spot gold edged up 0.15 percent, with bullion last trading at $3,392.64 per ounce.
The stock market rally comes amid what analysts describe as a significant dovish pivot emerging at the Federal Reserve. In Japan, gains were supported despite a mixed set of earnings from major exporters. Toyota Motor cut its profit forecasts, citing the impact of U.S. tariffs, while Sony and Honda reported that the effects would likely be less severe than initially anticipated.
