Asian markets ended the day with mixed results amid a lack of clear direction as investors awaited Nvidia's earnings report and the minutes from the Federal Reserve's recent meeting. The lingering uncertainty over China's economic recovery and geopolitical tensions also contributed to market hesitation.
The U.S. dollar remained stable as additional comments from Federal Reserve officials suggested that persistent inflation might necessitate maintaining higher interest rates for an extended period. Gold prices saw slight declines in Asian trading, while oil prices dropped by over 1% following industry reports of rising U.S. stockpiles.
China's Shanghai Composite Index experienced fluctuations before closing slightly higher at 3,158.54. Conversely, Hong Kong's Hang Seng Index fell by 0.13%, ending at 19,195.60.
In Japan, stock markets saw significant declines due to disappointing trade data. The country recorded a larger-than-expected trade deficit in April, attributed to weaker-than-anticipated export growth, particularly to China. The Nikkei 225 dropped by 0.85% to 38,617.10, and the broader Topix Index fell by 0.81% to 2,737.36. Notably, Tokyo Electron and Advantest shares decreased by around 1%, while SoftBank Group surged 2.4% and Daikin Industries rose 1.5%.
South Korean stocks closed slightly negative, with the Kospi Index ending marginally lower at 2,723.46 ahead of the Federal Open Market Committee (FOMC) minutes release. Major stock movements included a 0.9% decline for Samsung Electronics, while SK Hynix advanced by 3%. South Korea's producer prices increased for the fifth consecutive month in April, driven by rising costs in services and industrial goods, as reported by the central bank.
The Australian market ended slightly lower after a volatile trading session. Gains in mining and banking sectors balanced losses among gold miners and energy stocks. Meanwhile, New Zealand's S&P NZX-50 Index climbed by 0.48% to 11,732.28 following the Reserve Bank of New Zealand's decision to hold its cash rate steady at 5.5% but forecast a higher peak for future rates.
In the United States, stocks made modest gains overnight as investors processed comments from Federal Reserve officials and waited for Nvidia's earnings report. The three major indices rose between 0.2% and 0.3%, with the S&P 500 and Nasdaq Composite both closing at new record highs.
