Asian markets rally as oil eases, tech earnings lift investor sentiment

Technology heavyweight Apple reported stronger-than-forecast earnings and issued a positive sales outlook, despite cautioning about potential chip supply constraints

KARACHI: (UrduPoint/UrduPoint / Pakistan Point News-May 1^st, 2026) Asian stock markets posted strong gains on Friday as easing crude oil prices and better-than-expected corporate earnings boosted investor confidence, particularly in technology shares. Japan’s intervention to support the Yen also helped stabilize the Currency after recent pressure.

Technology heavyweight Apple reported stronger-than-forecast earnings and issued a positive sales outlook, despite cautioning about potential chip supply constraints. Its shares rose 2.7% in after-hours trading. Optimism also extended to other major firms, with Caterpillar and Alphabet gaining around 10% after surpassing market expectations.

The upbeat corporate performance fueled broader market strength. The S&P 500 rose more than 10% during April, while the Nasdaq surged 15%, marking its strongest monthly performance since 2020. Futures remained positive, with both indices showing modest gains in early Friday trading.

Asian markets also enjoyed a strong April performance, led by Japan’s Nikkei, which climbed 16%, Taiwan’s market up 23%, and South Korea surging nearly 31%. On Friday, regional trading was more subdued due to holidays, though Japan’s Nikkei still rose 0.6% and Australian shares added 0.9%. The MSCI Asia-Pacific index outside Japan edged up 0.3%.

Despite the rally, concerns remain over rising global energy prices. Asia, heavily dependent on imported oil and gas, remains vulnerable to disruptions in supply routes, particularly through the Strait of Hormuz.

Oil markets remained volatile after geopolitical tensions escalated.

Brent crude rose 0.6% to $111.70 per barrel after briefly touching a four-year high of $126.41 earlier in the week. US crude also edged higher to $105.10 per barrel.

Currency markets saw heightened activity following reports that Japanese authorities intervened to support the yen by selling US dollars. The move initially strengthened the yen, pushing the Dollar down sharply to a two-month low. However, the US currency later recovered, reflecting ongoing uncertainty over whether further intervention will follow.

Market analysts noted that such interventions could involve substantial financial commitments, potentially reaching tens of billions of Dollars, depending on market conditions.

The yen’s movement also influenced other major currencies, with the euro rising to $1.1726 and the British pound climbing to a 10-week high of $1.3591. Both currencies were supported by expectations of tighter monetary policy in Europe and the United Kingdom.

Central bank commentary added to market volatility. The Bank of England warned that sustained energy price increases could force more aggressive interest rate hikes, while the European Central Bank indicated that future policy decisions would depend on upcoming economic data. Analysts now expect the possibility of back-to-back rate increases in the coming months.

In the United States, recent signals from the Federal Reserve have reduced expectations of any rate cuts this year. As a result, US Treasury yields edged higher over the week.

In commodity markets, gold remained stable at around $4,612 per ounce, continuing a period of limited movement.