Global Market Today: Asian stocks rise after AI rally spurs US gauges

Stocks rose in Japan, South Korea and Australia, sending the broader MSCI Asia Pacific Index higher. The gauge is on course for its sixth consecutive weekly gain, the longest streak since late January. Futures contracts for the Nasdaq 100 Index were little changed after the underlying gauge closed at an all-time high.

Trading in the US was driven by AI-linked companies, with Nvidia Corp.’s six-day rally pushing its market value closer to $6 trillion. Cerebras Systems Inc. soared 68% in its debut, while Applied Materials Inc. shares advanced in after-hours trade on encouraging forecasts.

Elsewhere, Brent crude climbed 0.7% to around $106 a barrel, while the dollar held onto gains from the previous four sessions. The pound dropped Thursday after a new challenge to the leadership of UK Prime Minister Keir Starmer. Attention in Asia will also be on President Donald Trump’s China visit, with Taiwan emerging as a key issue.

In Treasuries, the two-year yield traded at 4.03% in early Asian hours Friday, its highest level since June, while the benchmark 10-year yield rose one basis point to 4.49%.

Elsewhere, Japanese 10-year government bond yields climbed on Friday as the nation’s producer prices surged to the highest since 2023.AI optimism, strong corporate profits and a still-robust economy have sent stocks from one record to the next, masking concerns of oil prices staying above $100 a barrel and stoking inflation. A report showed US retail sales rose for a third month, offering an upbeat data point for the health of consumers contending with higher prices.“April retail sales echoed what we’ve heard across corporate conference calls for weeks now: The US consumer remains resilient despite soaring gas prices,” said Bret Kenwell at eToro. “When it comes to stocks though, tech is in the driver’s seat right now, not the consumer.”

In geopolitical news, Trump signaled China is willing to support negotiations with Iran, as he pushes for a diplomatic resolution to end the war and reopen the Strait of Hormuz. China has not explicitly confirmed.

Bets that corporate earnings will keep powering ahead have offset worries that higher energy costs could fuel inflation and weigh on consumer confidence.

First-quarter S&P 500 profits likely grew about 27% from a year ago, marking a sixth straight quarter of double-digit expansion, according to data compiled by Bloomberg Intelligence.

It’s clear that Corporate America has become very skilled at adapting to a wide range of economic environments, according to Clark Bellin at Bellwether Wealth. For investors who missed the opportunity to put new money to work during the war-driven slide in March, he said “it’s not too late.”

“Stocks are still climbing the wall of worry, and we don’t think there is euphoria in markets just yet,” Bellin noted. “In fact, there is still plenty of skepticism, which suggests this bull market has more room to run.”