BANGKOK — Asian shares experienced a modest uptick in calm trading on Monday, as investors awaited significant reports regarding the condition of the U.S. economy this week.
Oil prices saw a rise alongside an increase in U.S. futures.
Hong Kong’s Hang Seng index gained 0.1%, reaching 17,108.28, while the Shanghai Composite index dipped 0.1% to 2,858.20. Markets in Tokyo and Bangkok remained closed for holidays.
In Seoul, the Kospi surged 1.2% to 2,618.30, driven by a 1.1% increase in Samsung Electronics, reflecting positive performances from major tech companies from the previous week. Taiwan’s Taiex advanced 1.4%, with Taiwan Semiconductor Manufacturing Co. increasing by 0.6% and Foxconn experiencing a substantial rise of 4.5%.
Australia’s S&P/ASX 200 rose 0.5% to 7,813.70.
Last week began with significant market fluctuations due to concerns over a potential slowdown in the U.S. economy, leading to substantial losses in Japanese stocks, marking their worst percentage drop since the 1987 financial crisis. However, markets stabilized as major U.S. companies reported better-than-expected profits for the spring quarter.
Analysts noted that stronger-than-expected U.S. economic data has alleviated fears of a recession, suggesting that the U.S. Federal Reserve may have more flexibility in its policy adjustments than previously anticipated.
On Friday, the S&P 500 closed 0.5% higher at 5,344.16, recovering from earlier losses during a volatile week. The Dow Jones Industrial Average rose 0.1% to 39,497.54, while the Nasdaq composite advanced 0.5% to finish at 16,745.30.
This week, investors can expect reports on inflation, retail sales, and unemployment, crucial indicators of economic health. Recent job reports have raised optimism despite ongoing challenges for lower-income households facing rising prices. Economists predict a return to growth in retail spending after a stagnation in June.
Concerns linger regarding potential adverse effects if upcoming inflation reports show unexpected rises at both the wholesale and consumer levels, coinciding with signals of economic weakening.
The excitement around artificial intelligence has propelled several major tech stocks to new highs this year, despite pressures from elevated interest rates. However, the “Magnificent Seven” stocks faced a decline in momentum last month, amid concerns about overvaluation.
Most of these leading tech stocks saw gains on Friday, with Nvidia being the exception, slipping 0.2%.
Market anxiety regarding the U.S. economy continues, pushing Treasury yields lower as investors seek safer investment options. The yield on the 10-year Treasury note decreased to 3.94%, down from 3.99% from the previous day.
Market participants remain cautious, suggesting that any negative economic reports could prompt further volatility.
In early trading on Monday, U.S. benchmark crude oil saw a rebound, gaining 58 cents to reach $77.44 per barrel. Meanwhile, Brent crude, the international benchmark, rose by 44 cents to $80.10 per barrel.
The U.S. dollar strengthened against the Japanese yen, rising to 147.25 from 146.63. The euro also climbed to $1.0923 from $1.0919.
