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Earnings, Wall Street Cues Lift Asian Stock Markets in Thin Holiday Trading

Asian stock markets gained on Friday in holiday-thinned trading, as traders weighed earnings reports against the backdrop of the Strait of Hormuz closure.Tokyo finished in the green, while Hong Kong and Shanghai were closed on holiday.Other exchanges in Bangkok, Mumbai, Seoul, Singapore, and Taiwan were also shuttered for May Day.In Japan, the Nikkei 225 opened evenly and edged higher, finishing up 0.4% as traders weighed overnight record-high closes on Wall Street and a generally good earnings season.The benchmark Nikkei 225 rose 228.20 to 59,513.12, although losing issues outnumbered gainers 121 to 102.Leading the upside was plumbing fixtures maker Toto, up 18.4%, while electronics component company Alps Alpine declined 15%, with both moves following earnings reports.In economic news, Tokyo's consumer price index-core (CPI-core), which strips out fresh food bills, rose 1.5% on year in April, the slowest pace in four years and below the central bank's 2% target for a third straight month.On other regional exchanges, the Australian ASX 200 inclined 0.7%.

US Markets97d ago

Japan Factory Sector Strengthens in April: PMI Report

Japan's manufacturing sector expanded in April despite global oil woes, although some production was to build cautionary buffers and stockpiles, reported S&P Global on Friday.The nation's manufacturing purchasing managers index (PMI) rose to 55.1 in April, up from 51.6 in March, and striking further above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly survey.Some manufacturing sector managers noted "that concerns over future supply chain delays and price increases due to the war in the Middle East had led customers to place new orders," while factories also built up precautionary stockpiles in April, explained S&P Global.However, Japan's industry in April also participated in the global AI-boom. "There were also reports that higher sales had been supported by greater demand for AI-related technology," said S&P Global.Japan's manufacturers reported both rising costs and boosting prices for customers in April.Factory managers "frequently mentioned higher prices for raw materials, oil and transport in the latest survey period," said S&P Global. "To help ease pressure on margins, companies raised their selling prices."Japan's manufacturers also added to payrolls in April, at the fastest pace since early 2022.Despite strong demand, Japan's manufacturers were wary in April, citing geopolitics.Due to "uncertainty around the war in the Middle East and its impact on global economic conditions" survey respondent optimism regarding the one-year outlook slipped to its second-lowest level since June 2020, said S&P Global.The Japan manufacturing PMI was compiled by S&P Global from surveys received from 400 manufacturers from April 9 through April 23.

Nikkei 225TYO:4088TYO:6135TYO:8002

Japan Stocks Gain on Intervention Signals, Yen Rebounds

Japanese shares closed higher on Friday, with sentiment supported after Tokyo signaled readiness to step into currency markets to curb volatility driven by speculative moves in crude-linked trades.The Nikkei 225 rose 0.38%, or 228.20 points, to close at 59,513.12.Atsushi Mimura, Japan's vice finance minister for international affairs, said authorities stand ready to respond to market distortions linked to speculative trading in crude oil futures.Japan moved into the currency market on Thursday to support the yen, according to people familiar with the matter, with U.S. officials alerted in advance in line with Group of Seven practices. The yen traded around 157.19 per dollar in Tokyo on Friday morning, after strengthening to 155.57 the previous day from an intraday low near 160.72.In other economic news, Tokyo core inflation slowed to 1.5% in April, marking a fifth straight deceleration and staying below the Bank of Japan's 2% target, while a key underlying gauge eased to 1.9%.Japan's consumer confidence index fell 1.1 points to 32.2 in April, with weaker sentiment on spending and livelihoods, even as 93.6% of households expected prices to rise over the next year.On the corporate front, Marubeni (TYO:8002) fell 4% after reporting an 8.1% rise in annual profit to 543.85 billion yen and forecasting 580 billion yen for the current year.Makino Milling Machine (TYO:6135) rose 5% after MM Holdings dropped its takeover bid following a government recommendation citing national security concerns.Air Water (TYO:4088) slid 14% after the Tokyo Stock Exchange designated its shares as a security on alert and imposed a listing rule violation penalty.

Japan Factory Activity Surges to Four-Year High

Japan's manufacturing activity expanded at the fastest pace in over four years in April, as output and new orders surged, according to S&P Global data.The headline manufacturing purchasing managers' index rose to 55.1 in April from 51.6 in March, marking the strongest reading since January 2022 and signaling solid growth in business conditions.Factory output increased at the quickest rate since February 2014, supported by stronger demand and inventory-building amid uncertainty linked to the Middle East conflict. New orders grew at the fastest pace since January 2022, with firms citing higher client demand and increased interest in AI-related products.Supply chain conditions deteriorated sharply, with supplier delivery times lengthening at the steepest rate in 15 years, while input cost inflation accelerated to a three-and-a-half-year high, driven by higher raw material, oil and transport costs.Manufacturers raised selling prices at a faster pace to offset rising costs, while employment growth picked up to one of the strongest levels since early 2022.Despite the strong data, business confidence weakened, with firms citing uncertainty over global demand and supply disruptions.

US Markets97d ago

Tokyo Inflation Hits Four-Year Low as Oil, Yen Cloud Outlook

Tokyo inflation lost momentum again, underscoring the Bank of Japan's dilemma as price pressures build unevenly. Core consumer prices in the capital rose 1.5% in April, the slowest pace in four years and below the central bank's 2% target for a third straight month.The reading marked a fifth consecutive slowdown and came in under market expectations. A narrower gauge that strips out both fresh food and energy, which is also closely watched by policymakers, increased 1.9%, also easing from the prior month.The softer print partly reflects government fuel subsidies and one-off factors such as a sharp drop in nursery school fees, alongside moderating gains in durable goods and processed food. Energy prices continued to decline, though at a slower pace.Still, the calm may not last. Rising oil prices tied to the Middle East conflict and a weaker yen are expected to push up import costs in the months ahead.The outlook is already complicating policy decisions.The BOJ kept rates unchanged this week in a split decision, even as some officials leaned toward tightening. Governor Kazuo Ueda signaled flexibility, leaving room to wait as risks to growth intensify.Currency moves add another layer. Authorities stepped into the foreign exchange market to support the yen after it slid near 160 per dollar, highlighting concern that prolonged weakness could further inflate import bills."We expect the BOJ to guard against an inflation overshoot. That strengthens the case for a 25-basis-point hike in June, but the latest reading suggests it's far from certain," said Bloomberg economist Taro Kimura."The central bank is also watching uncertainty around the Iran war and the government's willingness to support growth amid a crude oil squeeze."

US Markets97d ago

Tokyo Inflation Hits Four-Year Low as Oil, Yen Cloud Outlook

Tokyo inflation lost momentum again, underscoring the Bank of Japan's dilemma as price pressures build unevenly. Core consumer prices in the capital rose 1.5% in April, the slowest pace in four years and below the central bank's 2% target for a third straight month.The reading marked a fifth consecutive slowdown and came in under market expectations. A narrower gauge that strips out both fresh food and energy, which is also closely watched by policymakers, increased 1.9%, also easing from the prior month.The softer print partly reflects government fuel subsidies and one-off factors such as a sharp drop in nursery school fees, alongside moderating gains in durable goods and processed food. Energy prices continued to decline, though at a slower pace.Still, the calm may not last. Rising oil prices tied to the Middle East conflict and a weaker yen are expected to push up import costs in the months ahead."Core consumer inflation is likely to accelerate due to cost-push factors from the Middle East conflict, which will push up not just prices for ⁠energy but various items," Masato Koike, senior economist at Sompo Institute Plus, was quoted by Reuters as saying.The outlook is already complicating policy decisions.The BOJ kept rates unchanged this week in a split decision, even as some officials leaned toward tightening. Governor Kazuo Ueda signaled flexibility, leaving room to wait as risks to growth intensify.Currency moves add another layer. Authorities stepped into the foreign exchange market to support the yen after it slid near 160 per dollar, highlighting concern that prolonged weakness could further inflate import bills.

Nikkei 225TYO:5423TYO:6146TYO:6301TYO:6501TYO:6762TYO:6857TYO:6861TYO:6954

Market Chatter: Japan Profits Rise as AI Boom Lifts Chip, Power Firms

Roughly 70% of Japanese companies reported higher profit for the fiscal year ended March, led by demand tied to AI, Nikkei reported Friday.Chip-related firms drove gains, with Advantest (TYO:6857) and Disco (TYO:6146) posting record earnings, while Hitachi (TYO:6501) benefited from data center demand. Factory automation and electronics groups including Fanuc (TYO:6954), Keyence (TYO:6861) and TDK (TYO:6762) also gained, the report said.Aggregate net profit rose 8% to 12.3 trillion yen, keeping Japan on track for a fifth straight annual record if trends hold, according to the report.Weakness persisted in some sectors, with Komatsu (TYO:6301) and Tokyo Steel Manufacturing (TYO:5423) hit by tariffs, China-driven price pressure and rising energy costs, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Japan Ramps Up Non-Middle East Naphtha Buying as Supply Tightens

Japan expects naphtha supply to remain stable through the year as buyers ramp up imports from outside the Middle East, Nikkei reported Friday, citing Prime Minister Sanae Takaichi.Supplies from the U.S., Algeria and Peru, along with domestic refining from stockpiled crude, are offsetting disruptions linked to the Iran conflict. Sourcing outside the Middle East is set to triple from pre-conflict levels, according to the report.Combined with about 1.8 months of intermediate chemical inventories, these flows should support supply beyond 2026, exceeding earlier government targets, the report said.Takaichi warned against excessive ordering and urged firms to align purchases with prior-year levels, while calling for efforts to ease logistics constraints during the Golden Week holiday, according to the report.Naphtha shortages, driven by disruptions around the Strait of Hormuz, have hit chemical supply chains, affecting products such as toluene and xylene used in paint thinners, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Japan Consumer Confidence Slips in April

Japan's consumer confidence weakened in April, while expectations for higher prices edged up, according to government survey data released Friday.The seasonally adjusted consumer confidence index fell 1.1 points from the previous month to 32.2. The survey, conducted on April 15, covered 8,400 households and had a response rate of 75.5%.Among key components, the index for overall livelihood dropped 1.5 points to 28.2, while willingness to buy durable goods fell 2.8 points to 23.2. The employment outlook slipped 0.2 points to 37.4, and income growth expectations were unchanged at 39.8.Price expectations strengthened, with 93.6% of respondents expecting prices to rise over the next year, up 0.5 percentage points from the previous month.Those expecting prices to remain unchanged accounted for 2.3%, down 0.4 points, while the share expecting prices to fall was also 2.3%, down 0.2 points.

Market Chatter: Japan Intervenes to Lift Yen After Drop Near 160

Japan entered the foreign exchange market to support the yen after it slid to around 160 per dollar, Nikkei reported Thursday, citing a government official.The currency strengthened to the mid-155 range following the move. Finance Minister Satsuki Katayama had earlier warned that authorities were close to taking action against excessive weakness, according to the report.The intervention is the first since July 2024, when Japan spent about 5.53 trillion yen over two days after the currency hit a decades-low, the report said.Yen selling has intensified on rising oil prices and expectations of a wider trade deficit, while a stronger dollar, backed by steady U.S. rates, added pressure, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Tokyo Core Inflation Eases, Extends Run Below BOJ Target

Tokyo core consumer prices rose 1.5% in April from a year earlier, slowing from 1.7% in March and marking a third straight month below the Bank of Japan's 2% target, government data showed Friday.The increase in the core consumer price index, which excludes fresh food, was below the median market forecast of 1.8% and the slowest since March 2022. It is also the fifth consecutive month of deceleration, the longest such stretch since 2009.A separate index that strips out both fresh food and energy rose 1.9% in April, softer than the 2.3% reading in March. Overall consumer prices increased 1.5% during the month in review.

Tokyo Stocks Open Marginally Higher

Japanese equities opened marginally higher on Friday morning. The Nikkei 225 barely moved in positive territory to open at 59,379.12.Tokyo's core inflation unexpectedly slowed to its smallest gain in four years, with the CPI excluding fresh food rising 1.5% in April, below the Bank of Japan's target.The yen strengthened notably after authorities intervened in the foreign-exchange market just hours after issuing a "final" warning to bearish traders, Bloomberg News reported Friday.However, Nikkei Asia, citing an unnamed government official, reported that Japan had intervened by buying the yen and selling the dollar.

US Markets98d ago

Japan Retail Sales Beat Forecasts Amid Rising Living Costs

Japan's retail sales picked up in March, helped by government support and steady consumer demand, even as rising costs and global tensions cast a shadow over the outlook, government data showed Thursday.Retail sales rose 1.7% from a year earlier to 14.3 trillion yen, rebounding from a 0.1% decline in February and beating expectations for a 0.8% gain, according to the Ministry of Economy, Trade and Industry. On a monthly basis, sales climbed 1.3% after a 2.0% drop, suggesting spending regained some momentum.Grocery and dining-related spending inched up, helping offset a sharp fall in fuel sales as energy prices remained volatile. Broader activity was also firm, with commercial sales up 3.2% and wholesale trade rising 3.7%, pointing to underlying demand across sectors.Still, the mood among consumers is turning cautious. A government survey showed confidence slipped again in April, with most households expecting prices to keep rising over the next year."Rising crude prices and supply constraints are likely to weigh on production while lifting inflation," Sompo Institute Plus economist Masato Koike said.The pressure is showing up more clearly on the production side. Industrial output fell 0.5% from the previous month, marking a second straight decline and missing forecasts for a gain. The drop was led by chemical and petroleum-related goods, where supply disruptions and higher input costs tied to Middle East tensions have started to bite. Output of key materials like polyethylene and polypropylene saw particularly sharp declines.Manufacturers expect another dip in production in April, suggesting the weakness may persist.

US Markets98d ago

Japan Industrial Output Down on Month, Up on Year in March

Japan's index of industrial production rose on year in March, but slipped on a seasonally adjusted basis from February, reported the country's Ministry of Economy Trade & Industry (METI) on Thursday.Japan's industrial production in March rose 2.3% on year, but declined by a seasonally adjusted 0.5% from February, on soft chemical and oil production, reported METI.Industrial shipments in March rose 2% on year, but declined a seasonally adjusted 1.1% from February, added the agency.Industries in which output contracted in March included chemicals, petroleum and coal, and general-purpose and business-oriented machinery, said METI.Sectors that posted expanded output in March included iron, steel and non-ferrous metals, electronic parts and devices, and plastics.However, survey respondents expected industrial output to rise by 2.1% in April from March, said METI.The METI survey was roughly in line with recent industry reports from S&P Global.The Japan manufacturing purchasing managers index (PMI) slipped from a 45-month high of 53.0 in February to 51.6 in March, but still struck above the 50-mark that separates growth from contraction, reported S&P Global.