Markets – Asian Stocks Advance as Investors Track Global Economic Signals
Markets – Asian equity markets extended their upward movement on Friday as investors responded positively to easing geopolitical concerns and encouraging global cues. Indian benchmark indices also opened higher, although analysts continued to advise caution ahead of the upcoming monthly derivatives expiry.
The domestic market began the session on a steady note, with the BSE SENSEX climbing 178.30 points, or 0.24 percent, to reach 75,361.66. The NSE NIFTY 50 also moved higher by 48.15 points, or 0.20 percent, to trade at 23,702.85 during early hours.
Investors Remain Careful Despite Positive Opening
Market participants remained selective in their buying activity as foreign institutional investment trends continued to weigh on sentiment. Analysts observed that while the broader tone stayed positive, traders avoided aggressive positions ahead of next week’s contract expiry.
Financial market expert Ajay Bagga noted that foreign portfolio investors have largely continued their selling activity throughout May. According to him, the possibility of continued volatility near the month-end expiry is prompting investors to maintain a defensive stance going into the weekend.
Asian Markets Witness Broad-Based Buying
Across Asia, major benchmark indices registered strong gains, reflecting improved risk appetite among investors. Japan’s Nikkei 225 emerged as the top performer, surging 2.61 percent with a jump of more than 1,600 points to close near 63,293.
Hong Kong’s Hang Seng Index also advanced 1.34 percent, while Taiwan’s weighted index gained 1.28 percent. Other regional markets, including Singapore’s Straits Times and South Korea’s KOSPI, stayed in positive territory with moderate gains.
Analysts linked the rally to optimism surrounding technology-driven growth momentum and reduced fears of immediate geopolitical escalation in the Middle East.
Global Concerns Continue to Influence Sentiment
Despite the upbeat market performance, experts warned that global financial markets remain vulnerable due to ongoing geopolitical uncertainty and inflation-related pressures. Ajay Bagga said concerns linked to the prolonged Iran conflict and disruptions in global energy supply chains continue to create risks for investors worldwide.
He also pointed to softer-than-expected Japanese core inflation data, which may reduce pressure on the Bank of Japan to implement another rate hike in the near future. That development provided additional support to Asian equities during Friday’s session.
Crude Oil Prices Remain Elevated
Energy markets continued to remain active amid concerns about global supply stability. Brent crude traded at USD 104.16 per barrel, recording an increase of 1.54 percent, while crude oil prices rose 1.09 percent to USD 97.40 per barrel at the time of reporting.
Meanwhile, gold prices slipped by 0.31 percent to USD 4,528.87, indicating some reduction in safe-haven demand as equity markets recovered.
Diplomatic Signals Improve Investor Confidence
Investor sentiment also improved after recent political developments suggested that immediate military escalation involving Iran may be avoided for now. Reports indicating a possible delay in further action by the United States helped global markets maintain their recovery trend.
Bagga stated that markets are focusing more on the absence of direct military conflict rather than political rhetoric. He added that ongoing diplomatic efforts and the fragile ceasefire announced earlier in April have provided temporary relief to financial markets.
UAE Pipeline Project Seen as Long-Term Positive
Long-term energy infrastructure developments also attracted attention among investors. Abu Dhabi recently announced that nearly half of its new oil pipeline project has been completed. The project is expected to reduce dependence on the Strait of Hormuz for oil exports by 2027.
According to market experts, the development could benefit India significantly in the future because of the country’s strong strategic ties with the UAE and the location advantage enjoyed by Indian refineries near Gulf energy routes.
Rupee Shows Marginal Strength Against Dollar
In the currency market, the Indian rupee posted a slight gain against the US dollar. At the time of reporting, the rupee was trading at 96.23, rising 0.06 percent compared to the previous session.