Asian Shares Advance, US Futures Tick Up As Dalal Street Set For HigherOpening

Mumbai, May 22: Indian equities are poised for a higher start on Friday, tracking gains across Asian markets and overnight resilience on Wall Street.

Asian shares advanced, led by a rise in Japanese equities after investors drew comfort from signs of progress in U.S.-Iran negotiations. Japan’s Nikkei surged over 2%, while MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.5% higher. Hong Kong’s Hang Seng rose 0.8% while South Korea’s Kospi traded 0.3% higher. U.S. stock futures also traded in the green, pointing to steady global risk appetite.

Wall Street Ends Modestly Higher

U.S. markets ended modestly higher overnight after a volatile session dominated by oil prices, Treasury yields and corporate earnings. The Dow Jones Industrial Average climbed 0.55% to a record closing high, while the S&P 500 and Nasdaq posted mild gains.

Investor attention remained centred on chip giant Nvidia, whose strong earnings and upbeat forecasts led to profit booking.

Markets, however, found support from reports suggesting continued diplomatic engagement between the United States and Iran.

Europe Flat as Economic Worries Linger

European markets ended flat on Thursday, pausing after recent gains as investors monitored developments in the Middle East. The pan-European STOXX 600 index finished almost flat.

At the same time, rising crude oil prices and sticky inflation concerns continued to pressure global bond markets.

What it Means for Indian Markets

For Indian markets, firm Asian cues could support opening sentiment. However, expect investors to remain selective amid lingering geopolitical uncertainty.

Energy and upstream oil companies may stay in focus if crude prices remain elevated, while information technology stocks could benefit from dollar strength. On the other hand, sectors sensitive to inflation and interest rates, including financials and consumer-focused plays, may witness a cautious undertone if global bond yields continue to rise.

Source:

• Exchanges