Asian stocks showed a mixed trend on Monday with calm trading, with a focus on upcoming significant reports on the U.S. economy. Oil prices climbed, and U.S. futures were up. Hong Kong’s Hang Seng index edged higher, while the Shanghai Composite slipped slightly. Markets in Tokyo and Bangkok were closed for holidays. In Seoul, the Kospi surged, led by gains in Samsung Electronics, while Taiwan’s Taiex also advanced, supported by Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Electronics.
Australia’s S&P/ASX 200 also rose, following a volatile week that began with heavy selling due to concerns about the pace of the U.S. economy’s slowdown but ended on a calmer note with better-than-expected corporate profits. Last week’s speculation about a potential economic recession eased following positive U.S. economic data, impacting the rate expectations of the U.S. Federal Reserve.
On Friday, the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite all closed higher, with upcoming reports this week focusing on inflation, retail sales, and unemployment. An optimistic jobs report raised hopes for economic recovery, particularly for lower-income households struggling with rising prices.
Concerns about the U.S. economy’s strength persisted, leading to lower Treasury yields as investors sought safer assets. The week also witnessed a rebound in U.S. benchmark crude oil prices and a strengthening of the U.S. dollar against the Japanese yen and the euro. While Big Tech stocks have driven the S&P 500 to record highs, some stocks known as the “Magnificent Seven” lost momentum, reflecting ongoing market volatility and concerns about overvaluation.
