Nasdaq Futures Lead Charge: Salesforce & Retail Earnings Boost Optimism, But Snowflake Plunge Signals Tech Volatility

The Nikkei 225 Index surged today, closing up 1.47% at 50,596.24, recovering losses from earlier in the week. The powerful rally was predominantly driven by bullish sentiment surrounding the U.S. tech sector and hopes for a future Federal Reserve rate cut, which generally boosts global risk appetite. This external positivity successfully overshadowed the persistent domestic risk factors, namely the appreciation of the Yen and ongoing speculation about a looming Bank of Japan (BOJ) interest rate hike.

The Hang Seng Index (HSI) closed largely flat after a choppy session, with the initial optimism from the U.S. market being completely neutralized by domestic sector concerns. The benchmark HSI managed a fractional gain of just 0.20%.

European equity markets are trading sideways to modestly higher at midday, with major indices showing resilience despite earlier negative catalysts. The pan-European STOXX 600 Index is trading marginally up, supported by positive corporate news that is successfully counteracting the drag from higher-than-expected Eurozone inflation and sluggish domestic growth data. The market mood is one of strategic holding, as traders await further clarity from central banks on the path of interest rates, now that the inflation risk has been confirmed.

The Hang Seng Index (HSI) in Hong Kong has slumped sharply in mid-morning trading, currently down over 1.28%, driven by renewed panic in the distressed Chinese property sector. This decline is directly translating into a broad sell-off across mainland-tied and technology stocks listed in Hong Kong, overshadowing positive leads from the US market overnight. The market remains highly sensitive to any sign of trouble among major developers, forcing investors to focus on defensive or commodity-exposed stocks for protection.