Asian markets showed a mixed performance in early trading on Monday as investors awaited significant economic reports from the U.S. this week. With major Asian markets in Tokyo and Bangkok closed for holidays, regional indices displayed varied movements.
In Hong Kong, the Hang Seng index edged up by 0.2%, reaching 17,120.23. Similarly, the Shanghai Composite saw a modest gain of 0.1%, ending at 2,863.23. The Kospi in Seoul jumped 1.1% to 2,616.11, buoyed by a rise in Samsung Electronics shares, which also advanced by 1.1%. Taiwan’s Taiex mirrored this trend with a 1.1% increase, though key player Taiwan Semiconductor Manufacturing Co. saw a slight 0.1% gain, and electronics giant Hon Hai Precision Electronics, also known as Foxconn, surged 4.5%. Australia’s S&P/ASX 200 rose 0.5% to 7,815.60.
Last week saw heightened volatility in global markets, with heavy selling triggered by concerns over a potential slowdown in the U.S. economy. Japanese stocks experienced their worst percentage loss since the 1987 Black Monday. However, the week ended on a more stable note as U.S. companies reported better-than-expected spring profits, easing recession fears.
Yeap Jun Rong of IG noted that recent strong U.S. economic data has mitigated recession concerns, suggesting that the Federal Reserve may have more flexibility in its policy decisions than previously anticipated.
On Friday, U.S. markets closed on a positive note. The S&P 500 rose by 0.5% to 5,344.16, rebounding from earlier losses. The Dow Jones Industrial Average inched up 0.1% to 39,497.54, while the Nasdaq composite added 0.5%, ending at 16,745.30. Despite this, the “Magnificent Seven” tech stocks, which include major players like Nvidia, faced mixed reactions, with Nvidia slipping 0.2% despite gains in other stocks.
This week, investors are focused on upcoming reports on inflation, retail sales, and unemployment. Analysts are watching closely to see if inflation data shows unexpected increases, which could impact economic stability. The recent jobs report had previously raised optimism following a period of investor concern.
Treasury yields fell on Friday as investors sought safer investments, with the 10-year Treasury yield dropping to 3.94% from 3.99%. Market volatility remains high, with fears that one or two negative economic indicators could lead to further turmoil, according to Benjamin Picton of Rabobank.
In commodities, U.S. benchmark crude oil fell by 38 cents to $77.22 per barrel in electronic trading, while Brent crude, the international standard, dropped 22 cents to $79.88 per barrel. The U.S. dollar gained against the Japanese yen, rising to 147.13 yen from 146.63 yen, and the euro strengthened slightly to $1.0922 from $1.0919.
As global markets navigate these uncertainties, all eyes are on the upcoming U.S. economic reports, which could provide crucial insights into the future direction of both U.S. and international markets.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
