Equity markets in Asia extend gains as risk sentiment continues to improve

Asian stock markets traded mostly in green territory on Friday, following a positive lead from Wall Street and as oil prices stabilized after reaching multi-year highs in the previous session.

Japan’s Nikkei 225 rose 1.23 percent to 22,774.50 points, while the broader Topix added 0.98 percent. Technology and financial components led gains and supported both indexes.

In South Korea, the Kospi benchmark was up 0.55 percent, with heavyweight Samsung Electronics growing about half a percentage point. Automakers also traded higher.

Down under, Sydney’s S&P/ASX 200 eased 0.04 percent to end the week at 6,116.20 points.

In mainland China, indexes did not hold up to gains. The Shanghai composite eased 0.36 percent and the Shenzhen composite fell 0.89 percent.

All sectors of the Hang Seng Index traded higher, allowing it to rise 1.12 percent by the time of this writing. Financials and technology were among best performers.

The iShares MSCI Malaysia ETF were able to recover by 1.76 percent on Thursday, following an initial 6 percent draw seen after the unexpected result of the country’s General Elections.

Markets in Malaysia remained shut following Mahathir Mohamad's opposition alliance won the elections. Mahathir, who served as prime minister of Malaysia between 1981 and 2003, was sworn late Thursday hours.

Market analysts are expecting a negative reaction when markets reopen on Monday, as participants were not expecting this result and previous government policies were priced in.

In other news, US President Donald Trump confirmed Thursday his meeting with North Korean leader Kim Jong Un will take place in Singapore on June 12.

On the data front, the US consumer price index increased 0.2 percent in April, against a forecasted 0.3 percent growth rate. However, this result is expected to have little impact on expectation for further monetary adjustments by the Federal Reserve.

Economic calendar:

The export/import price indexes for April are expected at 12:30 GMT. Later on, the University of Michigan will present its consumer sentiment survey for May at 14:00 GMT. FOMC Bullard is scheduled to speak as of 16:30 GMT.

FortFS