London, UK – European stocks saw a mixed opening on Wednesday, with the Stoxx 600 index down 0.2% in early trading. The FTSE 100 in the U.K. gained 0.5% after ending a five-day winning streak, while France’s CAC 40 was down 0.2% and Germany’s DAX was 0.5% lower.
In Asia, Japan’s Nikkei 225 index fell 2.1% in afternoon trading, leading declines among Asian stocks. The broader Topix index also dropped by 1.64%. This decline comes as investors await the Bank of Japan’s upcoming monetary policy decision, expected to provide insight into inflation outlook amidst various economic factors.
Meanwhile, South Korean chipmaker SK Hynix reported its highest operating profit in nearly two years, with a significant jump of 734% year-on-year. Despite this positive news, the company’s stock slid almost 3%. SK Hynix attributed its strong performance to increased sales of AI server products and advancements in AI memory technology.
South Korea also posted impressive GDP growth of 3.4% in the first quarter, surpassing expectations and marking the highest quarterly growth since the fourth quarter of 2021. This growth was driven by rising exports of IT items like cellular phones, despite a slight contraction in imports of electronic equipment.
Looking ahead, iCapital’s chief investment strategist Anastasia Amoroso expressed confidence in the S&P 500 potentially reaching 5,500 by the end of the year, representing an 8% increase from current levels. Amoroso highlighted semiconductor stocks as particularly promising, pointing to strong corporate earnings and consumer spending as key factors supporting the equities market.
As the global markets continue to navigate economic uncertainties, experts and investors alike are closely monitoring these developments for insights on future trends and potential investment opportunities.