Tokyo's Nikkei 225 index increased by 1.1 percent to 36,241.70 on Thursday, May 1, 2025, following the Bank of Japan's (BoJ) decision to maintain its key interest rate at around 0.5 percent. This decision occurred amidst thin trading due to holidays in several Asian markets. The BoJ also adjusted its GDP growth forecast for fiscal year 2025 to 0.5 percent, down from 1.1 percent.
U.S. markets displayed mixed signals, with the Dow closing up 0.4 percent at 40,669.36. Initial concerns arose from a 0.3 percent contraction in the U.S. economy during the first quarter of 2025. However, positive earnings reports from tech companies like Meta, whose shares rose over four percent in after-market trades, and Microsoft, helped to buoy market sentiment.
Nomura Securities strategist Takashi Ito anticipates that strong earnings from U.S. IT firms will drive gains, particularly in the electronics sector. Markets are now focused on the upcoming U.S. jobs data for April, which will provide insights into economic conditions following recent tariff adjustments.