Stock markets in Asia witnessed a range of outcomes on Friday in the wake of Wall Street achieving fresh highs, particularly driven by significant gains in the semiconductor sector. Japan's Nikkei 225 surged past 41,000 for the first time but later veered lower, ultimately trading down by 0.1% at 40,763.88. Conversely, companies in China, particularly in the property and technology sectors, exerted downward pressure on markets in Shanghai and Hong Kong, with the Hang Seng index in Hong Kong plummeting by 2.9% to 16,381.86, and the Shanghai Composite index declining by 1.4% to 3,033.77.
In Australia, the S&P/ASX 200 experienced a 0.4% drop to 7,753.20, while Bangkok’s SET index and Taiwan’s Taiex both exhibited marginal declines. On Wall Street, the S&P 500 ascended by 0.3% to a new peak of 5,241.53, marking its third consecutive day of setting all-time highs, with most stocks in the index making gains. The Dow Jones Industrial Average and the Nasdaq composite also notched up gains of 0.7% and 0.2%, respectively, further extending their record-setting streak. Notably, Micron saw a substantial 14.1% surge, propelling chipmakers upwards after posting stronger-than-expected results for the last quarter and providing an optimistic profit outlook for the ongoing quarter amidst heightened interest in artificial intelligence (AI).
Moreover, the trading debut of Reddit as a publicly traded entity resulted in a notable 48.4% increase in its stock price from the initial offering, while certain stocks faced setbacks, such as Apple, which encountered a 4.1% decline following an antitrust lawsuit from the Justice Department. Furthermore, companies like Accenture and Darden Restaurants experienced stock fluctuations after reporting mixed financial performance, contributing to the broader market movements. The Federal Reserve's statement affirming its intention to implement three rate cuts this year helped assuage concerns and stabilize Treasury yields, with expectations for rate reductions beginning as soon as the June meeting.