Asian stocks today: Asian markets opened on a mixed note on Wednesday, 1 July. Japan’s Nikkei 225 climbed 1.79%, while the broader Topix index gained 1.07%. South Korea’s Kospi advanced 1.52%, although the small-cap Kosdaq slipped 0.42%.
Australia’s S&P/ASX 200 was largely flat, edging 0.05% lower. Meanwhile, futures for Hong Kong’s Hang Seng Index pointed to a stronger open at 22,990, compared with its previous close of 22,881.02.
What’s driving Asian markets today?
Asian markets opened higher after a technology-led rally on Wall Street, where the S&P 500 advanced 0.8% and the Nasdaq 100 jumped 1.7%. A nearly 4% surge in semiconductor stocks also helped the sector register a record quarterly gain.
In commodities, Brent crude rose 0.7% to trade near $73.50 a barrel during early Asian hours, recovering part of Tuesday’s decline that followed optimism over the durability of the US-Iran ceasefire. Gold was largely unchanged at around $4,010 an ounce, while US Treasuries declined in the previous session. The Japanese yen traded near 162.65 against the dollar after touching a four-decade low earlier in the week.
Market participants continued to look beyond geopolitical uncertainties as recent US economic data underscored the resilience of the economy. Stable consumer spending and a robust labour market have eased fears that elevated energy prices and trade-related uncertainties could undermine growth, reinforcing confidence in corporate earnings.
In Asia, the yen weakened to a four-decade low against the US dollar, prompting traders to closely watch the level at which Japanese authorities may step in to support the currency. After the yen breached the 162-per-dollar mark on Tuesday, strategists increasingly identified 163 and beyond as the next key levels, suggesting the Finance Ministry may be willing to tolerate a weaker yen than it did in 2024.
US stock market today
US stock markets ended Tuesday on a strong note, with the S&P 500 and Nasdaq posting their biggest quarterly gains since 2020 as investor optimism around economic resilience and corporate earnings outweighed concerns over the Middle East conflict.
The Dow recorded its strongest quarterly performance since 2022. All three major indexes also closed higher on the day, with the Dow notching a record closing high for the second consecutive session. Technology stocks led the rally among S&P 500 sectors, while the Philadelphia Semiconductor Index surged 3.9%.
The Dow Jones Industrial Average climbed 136.46 points, or 0.26%, to close at 52,319.20. The S&P 500 advanced 58.93 points, or 0.79%, to 7,499.36, while the Nasdaq Composite jumped 393.58 points, or 1.52%, to finish at 26,213.72.
Despite the strong quarterly performance, weakness in heavyweight technology stocks had pressured markets in recent weeks, leading both the S&P 500 and Nasdaq to post losses for the month of June.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.