Asian shares rose on Monday following a strong rally in Wall Street last week, fueled by better-than-expected U.S. employment data. U.S. futures also edged higher, along with oil prices. The Japanese yen weakened slightly after suspected government intervention, with the dollar gaining against the yen. Japanese Finance Minister Shunichi Suzuki expressed concerns over rapid fluctuations, highlighting the impact on households and businesses. The euro also rose against the dollar. Markets in Hong Kong and Shanghai had mixed performances, with a private sector survey showing growth in China’s services sector, albeit at a slower pace.
Australia’s S&P/ASX 200 and Taiwan’s Taiex saw gains on Monday, while markets in Japan and South Korea remained closed for holidays. In the U.S. on Friday, the S&P 500 had its best day since late February, erasing losses for the week. The Dow Jones Industrial Average and Nasdaq composite also ended higher, with technology sector stocks leading the rally. The Labor Department reported a modest increase in job additions in April, lower than economists’ predictions, indicating a possible impact of the Federal Reserve’s rate hikes on the economy. This may lead to a reassurance for the Fed that inflation will ease, potentially resulting in a lowering of interest rates.
Friday’s market rally in the U.S. was driven by technology stocks, including gains in companies such as Apple, Microsoft, and Nvidia. Apple announced a $110 billion stock buyback, while Microsoft and Nvidia saw stock increases. Several companies also reported strong quarterly results, leading to gains in their stock prices. Energy trading saw benchmark U.S. crude and Brent crude rising in electronic trading. Companies like Amgen, Live Nation Entertainment, Motorola Solutions, Booking Holdings, and Expedia Group also saw positive or negative movements based on their quarterly results and guidance.
Overall, the market outlook remains positive after a strong rally last week, supported by the favorable U.S. employment data. The Federal Reserve’s stance on interest rates and inflation will continue to be closely monitored by investors, with expectations of potential rate adjustments. Technology sector stocks are likely to remain in focus, along with developments in the energy sector. Global economic factors, such as fluctuations in currency values and geopolitical events, will also play a role in influencing market movements. Investors are advised to stay updated on relevant news and economic indicators to make informed decisions in the evolving market environment.
