Australia and Japan Markets Rise Despite Iran Tensions and Mixed U.S. Data

Markets in Australia and Japan climbed on Friday, following Wall Street's record highs, as investors digested robust earnings reports from major U.S. companies while sidelining weaker economic data and escalating tensions involving Iran.

This market resilience highlights investor confidence in corporate performance despite geopolitical uncertainties and below-expectation U.S. GDP growth, signaling cautious optimism in the global economic outlook.

Wall Street's Record Highs Fuel Asian Market Gains

The S&P 500 and Nasdaq Composite both hit new record highs overnight, with the S&P 500 closing above 7,200 for the first time. The Dow Jones Industrial Average surged 1.62%, buoyed by strong earnings from tech giant Apple and industrial leader Caterpillar.

These gains provided momentum for Asian markets, where Australia's S&P/ASX 200 rose 0.93%, poised to end an eight-session losing streak, and Japan's Nikkei 225 climbed 0.59%, with the Topix index recovering earlier losses.

Geopolitical Tensions and Currency Moves

Brent crude prices briefly spiked to $126 a barrel following reports that the U.S. military would brief President Donald Trump on potential action against Iran, though prices later settled lower. Meanwhile, the Japanese yen weakened 0.43% against the dollar after Tokyo reportedly intervened to support the currency, which had surged to a two-year high earlier in the week.

Investors are balancing strong corporate earnings against geopolitical risks and economic data, showing resilience in the face of uncertainty.—Lim Hui Jie, Markets Correspondent

Mixed U.S. Economic Data Adds Complexity

The U.S. Commerce Department reported a 2% annualized GDP growth in the first quarter, an improvement from the previous quarter but below economists' expectations of 2.2%. Despite this, markets remained focused on positive earnings results and shrugged off concerns about economic momentum.

Looking Ahead: Market Sentiment Amid Uncertainty

With major Asian markets closed for the May Day holiday, attention remains on how geopolitical developments and economic indicators will influence market direction. Investors appear cautiously optimistic, supported by strong corporate earnings and central bank interventions, but remain watchful of potential escalations in global tensions.