Asian shares gain on strong tech earnings

Sydney, April 28, (dpa-AFX/GNA) – Asian stocks advanced on Friday after solid earnings from Meta Platform boosted sentiment on Wall Street overnight.

Regional gains were capped by mixed earnings results released after the US market close as well as caution ahead of key inflation data due out later in the day and next week’s Fed meeting.The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred gauge of inflation, will be featured in the New York session.

Markets currently expect the Fed to raise interest rates by 25 basis points at its meeting next week.

Chinese shares rallied after the country’s central boosted short-term liquidity via reverse repos. The benchmark Shanghai Composite index closed 1.14% higher at 3,323.27. Hong Kong’s Hang Seng index inched up 0.27% to 19,894.57.

Japanese shares posted strong gains, the yen slumped ad government bonds rallied after the Bank of Japan (BoJ) kept rates ultra-low and announced a broad review of its longstanding monetary easing measures.

In its first meeting under new BoJ Governor Kazuo Ueda, the central bank scrapped its guidance on future interest rate levels, which previously said that rates would stay at “current or lower levels.”

Data earlier today showed consumer inflation in Japan’s capital rose more than expected in April.

The unemployment rate in the country rose to 2.8% in March versus 2.5% expected while industrial output rose 0.8% from the previous month and retail sales jumped 7.2% from a year earlier, separate reports showed.

The Nikkei average climbed 1.40% to 28,856.44 while the broader Topix index closed 1.23% higher at 2,057.48.

Seoul stocks extended gains from the previous session as chipmakers rose on expectations for a better outlook. The Kospi average edged up 0.23% to close at 2,501.53. South Korea’s retail sales inched up 0.4% in March from February and 0.5% from a year ago, official data published earlier in the day revealed.

Australian markets snapped a five-day losing streak, with miners and banks leading the surge. The benchmark S&P/ASX 200 rose 0.23% to 7,309.20 while the broader All Ordinaries index gained 0.25% to end at 7,501.

AGL Energy fell about 1% after the power producer said it has completed the partial refinancing of debt facilities worth A$1.6 billion ($1.06 billion). Tech firm Megaport jumped 41.5% after forecasting higher FY23 and FY24 earnings.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index closed 0.85% higher at 12,019.84 ahead of the RBNZ policy meeting next month.

US stocks rallied overnight as Facebook parent Meta, Comcast and Honeywell all delivered strong first-quarter results and weaker-than-expected GDP data suggested the Fed might end rate hikes in the near term.

US GDP grew 1.1% in the first three months of 2023 after expanding by 2.6% in the fourth quarter of 2022, the government said in its advance estimate.

The quarterly inflation number within the GDP report came in higher than expected and jobless claims unexpectedly declined in the week ended April 22, underpinning rate hike expectations for next week’s FOMC meeting.

The tech-heavy Nasdaq Composite soared 2.4% to log its best single-day gain since March while the Dow climbed 1.6% and the S&P 500 added 2% to register their biggest gains since January.

GNA