EQUITIES

Shares in Asia-Pacific largely climbed in Friday morning trade following big gains overnight on Wall Street.

Hong Kong’s Hang Seng index lead gains in the broader region as it rose 2%. The mainland Shanghai composite was up 0.37% but is set for around 8% fall for the month, their worst since January 2016.

South Korea’s KOSPI gained 0.80%, the S&P/ASX 200 in Australia advanced 0.73%, and Singapore’s FTSE Straits Times Index traded 0.82% higher.

Markets in Japan are closed on Friday for a holiday.

Overnight on Wall Street, the Nasdaq Composite jumped 3.06% to 12,871.53. The S&P 500 rising 2.47% to 4,287.50, and the Dow Jones Industrial Average advanced 1.85%, to 33,916.39.

Technology stocks in Asia-Pacific are watched on Friday after a big gain in the tech-heavy Nasdaq overnight. In Hong Kong, Tencent rose 6.6%, Alibaba jumped almost 10%, and AAC Technologies surged 6.3%. Shares of South Korean industry heavyweight Samsung Electronics gained 3.4%, and chipmaker SK Hynix climbed nearly 2%. Krafton jumped 3.5%, and LG Display gained 0.6%, Over in Taiwan, shares of Taiwan Semiconductor Manufacturing Company advanced 0.75% while Largan Precision gained 0.60%.

OIL

Oil prices were higher on Friday on the increased likelihood that Germany to join other European Union member states in an embargo on Russian oil, which could further tighten supplies in the already-stressed global crude market.

Meanwhile, Chinese demand concerns capped further gain. Authorities in Beijing are continuing to crack down on COVID-19 outbreaks and trying to avert the city-wide lockdown that has shrouded Shanghai for a month.

Brent crude rose 0.88% to 108.36 per barrel, set for its fourth straight month of gains. While U.S. crude added 0.47% to $105.69, on track to post five straight months of gains.

CURRENCIES

The dollar held firm at a 20-year high on Friday and was poised to score its best monthly gain in a decade, buoyed by bets on rising U.S. interest rates and doubts about growth in Europe and China. The dollar index was a whisker softer at 103.437, having hit 103.93 on Thursday, its highest level since late 2022. The index's current monthly gain of 5.2% would be its best since 2012.

U.S. treasury yields were trading within their recent ranges, having reached as high as 2.981% on April 20. The benchmark 10-year yield was at 2.821%, and the two-year yield was at 2.6132%.

GOLD

Gold rose from a 10-week low touched overnight, but still headed for biggest monthly percentage drop since September 2021, as the dollar and U.S. 10-year Treasury yields have strengthened this month.

Spot gold prices were up 0.63% at $1,906.20 per ounce. U.S. gold futures rose 0.76% at $1,905.70.

Spot silver gained 0.1% to $23.16 per ounce, platinum dipped 0.5% to $915.19, and palladium rose 0.5% to $2,243.74. All were set for monthly falls.

ECONOMIC OUTLOOK

Asian shares largely climbed on Friday thanks to a solid overnight Wall Street session, though were still set for their worst month in two years after the brutal selloffs in global stocks in recent weeks.

The Asian regional benchmark is heading for a 2% decline this week and a 7.3% drop for the month, its worst month since March 2020.

Driving the market at the moment were the China’s growth fears and China’s policy, looming U.S. rate hikes and lots of hawkish speak from the Fed, rising U.S. Treasury yields, and the war situation in Ukraine.

The safe-haven dollar sent soaring, fed by market expectations for 150 basis points of rate hikes in just three Federal Reserve meetings, with next week’s May 4-5 meeting to bring the first 50bps hikes. The aggressive Fed tightening path, mainly to curtail sky high inflation, far out paces other global central banks.

Germany hopes to find a way within days to replace Russian oil with supplies from other sources, Economy Minister Robert Habeck said on Tuesday, adding that Germany could then cope with an EU embargo on Russian oil imports. Germany is heavily reliant on Russian energy imports and had previously opposed a full ban. The embargo on Russian oil will further tighten supplies in the already-stressed global crude market.