The Tokyo stock market rose by 1.9%, and Hong Kong saw an increase of 0.5%, while Shanghai remained unchanged.
This uptick in the Nikkei occurred even as Nissan, the troubled Japanese carmaker, issued a grim profit forecast on Thursday, predicting a loss of up to $5.3 billion for the 2024-25 fiscal year.
According to Tatsuo Yoshida, an analyst from Bloomberg Intelligence, the market is optimistic about Nissan’s potential recovery, as shares of the company rose by over 1.6% on Friday.
“Recording significant impairment losses and restructuring expenses is vital for Nissan Motor’s recovery process,” he explained.
Japanese media reported that a second round of trade negotiations in Washington is scheduled for May 1, which will be closely monitored as a gauge for other countries looking for tariff relief.
Seoul’s stock market surged by 1% following comments from US Treasury Secretary Scott Bessent, who suggested that an agreement on trade between South Korea and the United States might be reached by next week.
Other markets such as Taipei, Wellington, Singapore, Manila, Bangkok, and Jakarta also experienced gains.
The market momentum was further boosted by strong quarterly earnings from Alphabet, Google’s parent company, which reported a profit of $34.5 billion for the recently concluded quarter.
Alphabet’s total revenue grew by 12% to $90.2 billion compared to the same quarter last year, and its cloud division revenue rose by 28% to $12.3 billion, as reported by the tech giant.
MUFG’s Chan highlighted that the Federal Reserve might lower interest rates sooner than anticipated.
In an interview with Bloomberg Television, Fed Governor Christopher Waller mentioned that he would back interest rate cuts if severe tariffs negatively impact employment.
“Regarding recent comments from the Fed, Waller indicated he would support rate reductions in the event of a significant decline in the labor market,” Chan noted.
