Shares in Asia displayed varied performance on Monday. Japan’s Nikkei 225 Index led with a 2% increase, reaching 66,890.02, driven by significant gains in technology stocks. Key contributors included Tokyo Electron, which rose by 3.5%, and Advantest, up by 4.9%.
South Korea’s Kospi Index showed a modest rise of 0.8% to 6,305.86. However, major chipmakers there faced losses. Samsung Electronics fell by 0.9%, while SK Hynix, a memory chipmaker, decreased by 1.3%. Analysts indicate that foreign investors are selling shares in large tech companies to capitalize on recent gains and shift investments into other sectors like defense.
Meanwhile, Hong Kong’s Hang Seng Index climbed 0.6% to 25,810.95. The Shanghai Composite Index was largely unchanged at 3,941.48. In Australia, the S&P/ASX 200 dropped by 0.4% to 9,231.00. Taiwan’s Taiex increased by 1.8% and India’s Sensex edged up by 0.1%.
Oil prices saw an uptick following geopolitical developments. Israel rejected a deal announced by U.S. President Donald Trump concerning Gaza. Additionally, potential arrangements between Iran and Oman over the Strait of Hormuz led to Iran suggesting the blockade of ships from “hostile countries.” Yemen’s Houthi rebels’ assault on a government-controlled port raised concerns over maritime safety in key passages. Brent crude, the global oil standard, rose 0.6% to $84.04 a barrel, while U.S. benchmark crude increased by 0.5% to $78.58 a barrel.
“The latest jobs report, showing a cut of 23,000 jobs in the U.S. last month, fueled hopes that the Federal Reserve might delay raising interest rates,” stated an analyst.
Major U.S. stock indexes concluded the previous week with gains. The S&P 500 saw a rise of 0.6% to 7,757.64, setting a new high. The Dow Jones Industrial Average increased 0.3% to 54,036.93. The Nasdaq Composite climbed 1.3% to 26,690.62. The unexpected job cuts raised concerns about consumer spending amid elevated inflation.
Technology stocks remained significant market drivers. Nvidia and Broadcom recorded gains of 2.3% and 1.7% respectively. Treasury yields responded to the jobs data, with the 10-year Treasury yield decreasing to 4.64% from 4.67% before the report. The two-year Treasury yield, more connected to Federal Reserve expectations, fell to 4.20% from 4.22%.
This week brings key inflation reports. The consumer price index (CPI), which tracks consumer costs, is anticipated to show a July inflation rate of 3.4%, a slight reduction from June’s 3.5%. Inflation rates have lingered above 3% throughout the year.
Currency fluctuations included a rise in the U.S. dollar to 158.37 yen from 157.71 yen. The euro slightly decreased to $1.1553 from $1.1568.