Financial markets across Asia posted positive results Friday, despite numerous exchanges being shuttered for May Day holiday observances.
Oil prices showed stability with Brent crude maintaining its position at $111.66 per barrel, while American benchmark crude increased by 46 cents to reach $105.53 per barrel.
Negotiations for establishing a three-week ceasefire in the Iran conflict face uncertainty after Iran’s supreme leader declared the country would safeguard its nuclear and missile programs as essential national resources.
Tokyo’s Nikkei 225 index climbed 0.7% to close at 59,687.65 as Japan’s currency strengthened against the American dollar. The dollar traded at 157.16 yen, rising from Thursday’s late session rate of 156.61 yen, though remaining significantly below Thursday’s peak of 160 yen.
Down under, Australia’s S&P/ASX 200 jumped 1% to finish at 8,750.40.
American market futures showed positive momentum following Thursday’s record-breaking performance driven by impressive earnings from Alphabet, Caterpillar, and other major corporations. These advances occurred despite volatile oil price movements that initially surged to near-record levels since the Iran war started before retreating.
The S&P 500 advanced 1% to surpass its previous record high, ending at 7,209.01 and capping off its strongest monthly performance in over five years. The Dow Jones Industrial Average jumped 1.6% to 49,652.14, while the Nasdaq composite rose 0.9% to a new record of 24,892.31.
Alphabet dominated the session with a 10% surge after Google and YouTube’s parent company reported quarterly earnings that nearly doubled analyst projections. “Investments in artificial intelligence are lighting up every part of the business,” stated CEO Sundar Pichai.
The company joins a growing list of businesses delivering stronger-than-expected profits for early 2026, despite elevated oil costs and economic uncertainties.
Friday witnessed some stabilization in oil markets after Thursday’s dramatic price swings driven by concerns about the conflict’s long-term effects on crude supply. Iran’s closure of the Strait of Hormuz has trapped oil tankers in the Persian Gulf, preventing deliveries to global customers, while a U.S. Navy blockade stops Iran from exporting its own petroleum.
Market participants actively traded contracts for various oil types extending months into the future. In the most liquid Brent crude segment for July delivery, prices peaked at $114.70 per barrel, dropped toward $107, and settled at $110.40 Thursday, showing minimal change from the previous session.
Throughout the war period, the highest price for the most actively traded Brent contract reached $119.50 last month.
In less liquid Brent trading, June delivery prices briefly exceeded $126 overnight before falling back to approximately $114.
Before the conflict began, Brent crude traded around $70 per barrel.
Corporate earnings drove significant stock movements, with Caterpillar surging 9.9%, Eli Lilly advancing 9.8%, and O’Reilly Automotive climbing 8.4% after all three exceeded quarterly profit forecasts. This trend matters significantly since stock valuations typically track corporate earnings over extended periods.
Meta Platforms dropped 8.7% despite the Facebook and Instagram owner posting better-than-expected quarterly profits. Investors concentrated on the company’s increased spending projections for data centers and other investments as it expands artificial intelligence capabilities.
Some investors remain skeptical about whether substantial AI investments will generate sufficient profits and productivity improvements to justify the costs.
Microsoft declined 3.9% after similarly raising its investment and capital spending forecasts.
Amazon gained 0.8% after fluctuating throughout the session, having significantly exceeded analyst earnings expectations for the latest quarter.
Treasury bond yields decreased as oil prices retreated. Economic data indicated the U.S. economy’s first-quarter growth rate fell short of economist predictions, while March inflation measures worsened roughly in line with expectations.
Additional employment data showed fewer Americans filed for unemployment benefits last week, suggesting reduced layoffs despite companies announcing substantial workforce reductions.
London’s FTSE 100 rose 1.6% following the Bank of England’s decision to maintain current interest rates. This action mirrored similar choices by the U.S. Federal Reserve Wednesday and the Bank of Japan Tuesday to keep rates unchanged.
