Asian Stocks Hold Near 8-Week High, BOJ and Big Tech Earnings in Focus
Asian stocks moved relatively steadily on Tuesday (April 28th), holding near their highest levels since late February, as market participants awaited the latest developments in the Middle East, as well as a series of central bank decisions and earnings reports from major technology companies. The MSCI Asia Pacific Index was virtually unchanged, while oil prices corrected slightly.
In commodities, global benchmark Brent fell 0.3% and traded just below $108 per barrel, helping ease pressure on riskier assets, although energy supply risks have not completely dissipated. In the foreign exchange market, the yen held steady at around 159.34 per dollar ahead of the Bank of Japan's policy decision.
Investors' focus also shifted to the earnings season for tech giants, which is expected to determine the direction of global sentiment. Alphabet, Microsoft, Amazon, and MetaTrader are scheduled to report results on Wednesday, followed by Apple a day later. Some market participants believe the recent equity rally has been largely driven by positive earnings revisions, so the results of big tech reports will test whether that momentum can be sustained.
In the US, S&P 500 futures rose 0.2%, in line with the narrative that AI-themed trading is making a comeback and the market has recovered most of its war-related losses. However, the major semiconductor index began to correct after a strong rally, signaling that rotation and profit-taking are still possible in the long-rising sector.
On the geopolitical front, the White House stated that US officials are discussing Iran's latest proposal, but are maintaining "red lines," including preventing Tehran from acquiring nuclear weapons. This statement came after reports that Iran offered an interim deal to open Hormuz in exchange for lifting a port blockade. Some believe the market reaction to the US-Iran headlines has begun to soften as expectations point to a short-term agreement that will lead to more detailed negotiations.
This week also presents a policy test, as the Fed, the ECB, and central banks in Japan, the UK, and Canada are scheduled to set interest rates, covering roughly half the global economy. While market consensus expects rates to remain on hold, investors will be closely monitoring the tone of the press conference regarding inflation risks from energy supply disruptions. In Asian markets this morning, the Topix rose 0.4%, Hang Seng futures fell 0.2%, S&P/ASX 200 futures fell 0.6%, and Euro Stoxx 50 futures fell 0.4%, reflecting a selective stance ahead of this week's major events. (Asd)
Source: Newsmaker.id
