Japan's Nikkei smashes past 42,000 mark to all-time high; Asia-Pacific markets climb on tech rally and rate cut hopes
What drove Japan's Nikkei 225 to record highs?
Japan's Nikkei 225 surged to record highs due to a global tech rally, strong corporate earnings, a weak yen, and investment reforms. Chip-related stocks, such as Nvidia, experienced significant growth, while improved corporate governance and a shift in investments from China and the U.S. also contributed to the Nikkei's rise.
What are the expectations for Japan's May machinery orders?
Japan's May machinery orders are expected to show a decrease of 3.2% on a seasonally adjusted basis, according to the Cabinet Office. This comes after core machinery orders rose 7.7% in February from the previous month. The data serves as a key indicator of capital spending in the coming months.
How did U.S. Big Tech influence Asia-Pacific markets?
U.S. Big Tech's influence on Asia-Pacific markets is significant, as seen in the recent rally that boosted the Nikkei 225 to record highs. Chip-related companies, such as Taiwan Semiconductor Manufacturing Company, experienced gains after reporting strong revenues. This optimism spilled over into other Asia-Pacific markets, with investors watching for further impacts on the region's tech stocks. Additionally, U.S. tech giants like Microsoft, Google, Amazon, and Meta have invested billions in the region, expanding their markets and influence6.