Shares advanced in Europe and Asia on Monday ahead of the Memorial Day holiday in the United States. Oil prices also saw a rise. European shares showed modest gains after the opening bell, while Asian benchmarks gained momentum throughout the day. Germany’s DAX edged 0.1% higher and the CAC 40 in Paris rose 0.2%. Tokyo’s Nikkei 225 added 0.7% and the Kospi in Seoul jumped 1.2%. Australia’s S&P/ASX 200 surged 0.8% and the Shanghai Composite index gained 0.8%. Hong Kong’s Hang Seng reversed early losses, gaining 1.2%.
In Taiwan and South Korea, strong buying of computer chip-related shares pushed benchmarks higher. The Taiex ended 1.1% higher with MediaTek, a semiconductor company, jumping 7.5%. Taiwan Semiconductor Manufacturing Corp. also saw a slight gain. Analysts from ANZ noted the positive impact of the current robust global semiconductor cycle on Taiwan’s growth outlook, fueled by breakthroughs in artificial intelligence, cloud computing, and 5G technology.
On Friday, the S&P 500 gained 0.7%, recovering from losses in the previous two days. It posted a minor gain for the week, extending its weekly winning streak to five days, sitting just below its record set on Tuesday. The Dow inched higher while the Nasdaq composite gained 1.1%, reaching an all-time high. Nvidia was the biggest force pushing the S&P 500 upward, rising 2.6% on Friday. Despite recent market volatility, the U.S. economy has shown strength in household spending, although concerns about high inflation persist.
Last week’s market turbulence began after the Federal Reserve released minutes from its last policy meeting indicating a possibility of raising rates if inflation worsens. Stocks fell further after reports on Thursday showed stronger than expected economic data in the U.S., raising concerns about inflation. In other trading on Monday, U.S. benchmark crude oil gained 31 cents to $78.03 per barrel, while Brent crude added 32 cents to $82.16 per barrel. The U.S. dollar slipped against the Japanese yen, while the euro rose slightly.
Overall, global markets showed positive momentum on Monday ahead of the Memorial Day holiday in the U.S. European and Asian shares recorded gains, with heavy buying in computer chip-related shares pushing benchmarks higher in Taiwan and South Korea. The strength in the global semiconductor cycle is being attributed to advancements in artificial intelligence, cloud computing, and 5G technology. Despite volatility, U.S. stocks recovered on Friday, with the S&P 500 and Nasdaq reaching all-time highs. Concerns about inflation persist, and market sentiment remains cautious.
As trading continues, investors are closely monitoring inflation data and economic indicators for signs of market stability. Oil prices also saw a rise on Monday, with U.S. benchmark crude gaining momentum. The U.S. dollar slipped against the Japanese yen, while the euro rose slightly. Amidst ongoing economic uncertainties, investors are assessing market conditions and global trends to make informed decisions during trading.
