Asian Markets Surge Following Wall Street Rally Pushing S&P 500 Towards Record High

Stocks in Asia traded higher on Friday following a rally on Wall Street that brought the S&P 500 within 1% of its record high. Investors in Tokyo, Seoul, Sydney, and China were focused on the release of April inflation figures.

In Japan, the Finance Ministry reported a record current account surplus for the fiscal year through March, driven by strong auto exports and solid returns on overseas investments. However, weak consumer spending tempered the positive data. The Nikkei 225 rose 0.4% in Japan, while Australia’s S&P/ASX 200 and South Korea’s Kospi also posted gains.

Hong Kong’s Hang Seng surged 2.1%, and the Shanghai Composite edged 0.2% higher. Price data expected on Saturday will provide insight into whether the economy is regaining momentum.

Equinix saw an 11.5% jump in its stock price after reporting stronger-than-expected profits, while Yeti Holdings rose 12.8% on better-than-expected quarterly earnings. However, Airbnb sank 6.9% despite beating profit and revenue expectations due to a revenue forecast that fell short of analyst estimates.

In the bond market, the yield on the 10-year Treasury eased to 4.45%, and the two-year yield slipped to 4.81%. Energy trading saw benchmark U.S. crude rise to $79.86 a barrel, while Brent crude added to $84.42 a barrel.

Currency trading saw the U.S. dollar edge up against the Japanese yen, while the euro fell slightly. Expectations are growing for the Bank of Japan to raise interest rates, although the exact timing and amount remain uncertain.