- US stock futures cautiously rose as the world awaited an update on US-Iran peace talks.
- Stocks rebounded on Thursday after Secretary of State Marco Rubio and Iranian media signaled progress on negotiations between the US and Iran for a peace deal.
- Markets started the week on a down note, with concerns of persistent inflation stoking worries about Federal Reserve rate hikes. Since reports of movement on US-Iran talks picked up on Wednesday, however, investors have had reason to believe a primary source of rising prices could be resolved soon.
- On Friday, the University of Michigan’s latest readings on consumer sentiment and inflation expectations will offer fresh insight into how much price pressures are rising as the war drags on.
- Earnings season also continues to wrap up, with major government contractor Booz Allen Hamilton (BAH) reporting its results before the bell.
- Asian stock markets extended gains on Friday and headed for weekly advances as chipmakers rebounded after upbeat earnings from Nvidia, while unresolved issues in U.S.-Iran negotiations kept investors cautious.
- Wall Street had closed slightly higher overnight, with the Dow Jones Industrial Average marking a record close.
- Investors piled back into chipmakers after Nvidia’s strong outlook underscored resilient spending on AI infrastructure.
- Japan’s Nikkei 225 jumped more than 2.5% to hover near record highs, set to climb nearly 3% for the week.
- Japan's broader TOPIX index rose nearly 1%.
- Japanese technology investor SoftBank Group (TYO:9984) extended sharp gains on optimism over a potential OpenAI initial public offering and expectations that Arm Holdings will benefit from booming AI demand.
- China's Shanghai Composite index rose 0.5%, while Hong Kong's Hang Seng climbed 1.3%.
- South Korea’s KOSPI edged 0.2% higher, heading for a 4.5% weekly jump.
- Samsung Electronics (KS:005930) shares fell about 2% on Friday as union workers began voting on a tentative pay agreement reached earlier this week that narrowly averted a potentially damaging 18-day strike involving tens of thousands of employees.
- Samsung shares had jumped 9% on Thursday after the tentative agreement led to the suspension of strike action.
- Still, gains across the region were capped by lingering uncertainty surrounding negotiations between Washington and Tehran.
- Officials on both sides pointed to signs of progress, but disagreements remained over Iran’s uranium stockpile and proposed controls in the Strait of Hormuz, a vital route for global oil shipments.
- U.S. Secretary of State Marco Rubio said there were “some good signs” in the talks but rejected any proposal involving tolls for ships using the strait.
- Oil prices rebounded after a sharp decline in the previous session as doubts resurfaced over whether the talks would ultimately produce a lasting agreement. Higher crude prices continued to fuel worries over inflation and global interest rates.
- India's Nifty 50 and Singapore's Straits Times Index rose 0.4% each.
- Australia's S&P/ASX 200 gained 0.5%.
- In Japan, data on Friday showed core consumer inflation slowed to a four-year low of 1.4% in April, easing from 1.8% in March and missing market forecasts, largely due to government fuel subsidies and lower education costs.
- However, analysts expect inflation pressures to rebound in coming months as higher energy prices linked to Middle East tensions feed through the economy.
- The inflation data did little to alter expectations that the Bank of Japan could still raise interest rates later this year, with some investors even betting on a possible June move as surging oil costs and a weak yen threaten to push prices higher again.
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This daily briefing is curated from a wide range of reputable sources including news wires, research desks, and financial data providers. The insights presented here are a synthesis of key developments across global markets, intended to inform and spark thought.
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