Asian markets rise during May Day festivities
On Friday, shares experienced an uptick in Asia, although numerous markets in the region remained closed in observance of May Day holidays. Brent crude’s price remained stable at $111.66 per barrel, while US benchmark crude oil increased by 46 cents to reach $105.53 a barrel. Prospects for a deal to cement a three-week ceasefire in the Iran war remained uncertain as Iran’s supreme leader asserted, “it will protect its nuclear and missile capabilities as a national asset.” In Tokyo, the Nikkei 225 increased by 0.7 per cent to 59,687.65 as the Japanese yen appreciated against the US dollar. The dollar purchased 157.16 yen, an increase from 156.61 yen late Thursday. However, that was significantly lower than the 160 yen level reached on Thursday. Australia’s S&P/ASX 200 experienced a notable increase of 1 per cent, reaching 8,750.40. US futures rose following a remarkable day for US stocks, which reached new heights on Thursday, buoyed by robust earnings from Alphabet, Caterpillar, and other major corporations. The gains followed the recent volatile fluctuations in oil prices, which soared to their peak levels since the onset of the war with Iran, only to swiftly decline thereafter.
The S&P 500 surged 1 percent, surpassing its previous all-time high, marking the conclusion of its strongest month in over five years. The closing figure stood at 7,209.01. The Dow Jones Industrial Average surged 1.6 percent to reach 49,652.14, while the Nasdaq composite rose 0.9 percent, setting a new record at 24,892.31. Alphabet surged by 10 percent following the announcement that the parent company of Google and YouTube reported profits for the latest quarter that nearly doubled analysts’ expectations. CEO Sundar Pichai stated, “Investments in artificial intelligence are lighting up every part of the business.” The company has emerged as the latest to report profits for the beginning of 2026 that surpass analysts’ expectations, despite the prevailing high oil prices and economic uncertainty. Friday introduced a sense of stability to the oil market, following a significant price surge on Thursday driven by concerns regarding the potential long-term effects of the war on crude oil supply. Iran has shut down the Strait of Hormuz to oil tankers, trapping them in the Persian Gulf and obstructing access to global customers, while a US Navy blockade is hindering Iran’s ability to sell its own oil. Traders are engaging in the buying and selling of contracts for various types of oil, extending over several months. In the most actively traded segment of the market for Brent crude, for delivery in July, the price peaked at $114.70 per barrel, subsequently dipped toward $107, and ultimately settled at $110.40 on Thursday, reflecting minimal change from the previous day.
During the ongoing war, the highest price recorded for the most actively traded Brent contract has reached $119.50, a figure established last month. In a less actively traded segment of the Brent market, the price for a barrel scheduled for delivery in June briefly exceeded $126 overnight before retreating toward $114. Before the war, Brent’s price was approximately $70. Caterpillar soared 9.9 per cent, Eli Lilly jumped 9.8 per cent, and O’Reilly Automotive leapt 8.4 per cent after all delivered profits for the latest quarter that topped analysts’ expectations. This is significant as stock prices generally align with the trajectory of corporate profits over an extended period. Meta Platforms experienced a decline of 8.7 percent, despite the fact that the company behind Facebook and Instagram reported higher-than-expected profits last quarter. Investors concentrated their attention on the heightened forecast regarding expenditures on data centres and other investments, as the company expands its AI capabilities. Doubts persist among certain investors regarding whether the extensive investment in AI will yield sufficient profit and productivity to justify the costs.
Microsoft experienced a decline of 3.9 per cent following a similar adjustment in its forecast for investments and other capital expenditures. Amazon experienced a rise of 0.8 percent after fluctuating between gains and losses throughout the day. It exceeded analysts’ expectations for earnings in the latest quarter. In the bond market, Treasury yields softened following a decline in oil prices. Reports indicated that the growth of the US economy in the first three months of the year was less than economists had anticipated, while a measure of inflation deteriorated in March by approximately the expected amount. A separate report indicated that fewer US workers applied for unemployment benefits last week, suggesting a decline in layoffs, despite companies announcing significant workforce reductions. London’s FTSE 100 surged 1.6 per cent following the Bank of England’s decision to maintain its main interest rate. That followed similar decisions by the US Federal Reserve on Wednesday and the Bank of Japan on Tuesday to maintain their rates unchanged.
