Hong Kong led gains in Asia on Friday, following an uptick in Wall Street overnight and ahead of the release of key U.S. employment data.
Shares of Apple suppliers drew attention after the tech giant reported earnings that exceeded expectations. Taiwan Semiconductor Manufacturing Company saw a 1% increase in shares, while Hon Hai Technology Group, commonly known as Foxconn, surged 1.3%.
Apple, whose second-quarter earnings surpassed market estimates, announced a significant stock buyback program of $110 billion. As a result, shares of the iPhone maker rose by 6% in extended trading. Investors are now turning their focus to shares of Apple suppliers in Taiwan and South Korea.
In South Korea, the Kospi slipped 0.26% to close at 2,676.63, while the smaller-cap Kosdaq tumbled 0.22% to end at 865.59.
Meanwhile, the Taiwan Weighted Index rose 0.53% to close at 20,330.32, and Hong Kong’s Hang Seng index added 1.34% in the final hour of trading.
The Japanese yen remained a focal point, strengthening to 153.13 against the U.S. dollar amid suspected government interventions earlier in the week. The currency is poised for its best week in over a year.
In the U.S., stocks closed higher on Thursday, with investors anticipating more earnings releases and the upcoming nonfarm payrolls report scheduled for Friday.
Economists surveyed by Dow Jones expect the April nonfarm payrolls report to show 240,000 job gains, compared to 303,000 additions in March.
Investors are closely monitoring the data following the Federal Reserve’s decision to keep interest rates unchanged at the end of its two-day meeting on Wednesday.
The Japanese yen was trading at 152.93 against the U.S. dollar, on track to conclude its best week in over a year, despite hitting its weakest level since 1990 earlier in the week.
Analysts, including those from BofA, have suggested the likelihood of two interventions conducted by Japanese authorities during the week, on Monday and Wednesday. However, official confirmation of these interventions is still pending.
Nicholas Smith, Japan strategist at CLSA, noted, “The government has been refusing to disclose whether they’ve been intervening or not, but I don’t think many people have any doubts,” in an interview with CNBC.
