Global Markets Weekly Wrap-Up

Asia-Pacific markets experienced mixed trading on Friday as investors digested underwhelming economic data from Japan and key earnings reports across the region. While early-week optimism surrounding a temporary trade truce between the US and China had buoyed sentiment, caution resurfaced by Friday, driven by disappointing economic indicators and renewed trade uncertainties.

Japan's economic landscape faced renewed scrutiny after data revealed a larger-than-expected contraction in the March quarter. The country's GDP shrank by 0.2% quarter-on-quarter, double the anticipated decline, and by 0.7% annually. Meanwhile, foreign investors poured a record JPY 8.21 trillion into Japanese equities and bonds in April, underscoring persistent global trade concerns as US-China negotiations remained uncertain.

In China, stocks dipped as several mid-cap firms, including Anhui Genuine New Materials and Suzhou Longjie Special Fiber, posted steep declines. Alibaba Group also fell short of revenue and profit expectations, pulling Hong Kong's Hang Seng Index lower by 0.46%. In South Korea, the Kospi 100 rose 0.28%, buoyed by a sharp gain in Hanmi Semiconductor, while Australia's S&P/ASX 200 climbed 0.56%, led by Appen’s 18.7% rally.

European and US markets presented a mixed picture as investors weighed tariff news and inflation data. The dollar weakened for the second consecutive session, benefiting the yen and Swiss franc. In London, the FTSE 100 climbed 0.7%, driven by gains in pharmaceutical and energy stocks like AstraZeneca and Shell. Meanwhile, Wall Street futures inched higher, supported by optimistic consumer sentiment data and ongoing tariff reprieves.

Commodity markets also showed restrained activity. Brent crude futures dipped 0.11% to $64.46 per barrel, while gold prices rallied as a safe-haven asset amid mounting trade uncertainties and geopolitical tensions, particularly surrounding failed Russia-Ukraine negotiations. Despite gold’s near-term strength, analysts cautioned against prolonged bullish momentum given mixed global economic signals.

Friday’s market performance reflected the ongoing tug-of-war between trade optimism and economic caution. While the US-China tariff truce initially lifted global stocks, concerns about slowing growth, disappointing corporate earnings, and unresolved geopolitical issues tempered gains by week's end. Investors will continue monitoring key economic data, Fed policy signals, and trade negotiations to gauge market direction in the weeks ahead.