Share trading in Asia showed varied outcomes on Monday. In Japan, the Nikkei 225 led with advances following gains in U.S. markets last week. Across the region, oil prices climbed and U.S. futures saw little movement.
In Tokyo, the Nikkei 225 experienced a 2% increase, reaching 66,890.02. This boost was largely due to strong performances by technology firms. Tokyo Electron, a maker of computer chip equipment, rose 3.5%. Similarly, Advantest, which specializes in chip testing devices, increased by 4.9%.
South Korea’s Kospi saw a modest gain of 0.8%, closing at 6,305.86. However, major chipmakers there reported losses. Samsung Electronics decreased by 0.9%, while SK Hynix, a memory chipmaker, fell 1.3%. Analysts attributed these declines to foreign investors locking in profits from recent increases and reallocating funds to other sectors like defense contracting.
In other Asian markets, Hong Kong’s Hang Seng rose 0.6% to 25,810.95. The Shanghai Composite index showed negligible change, settling at 3,941.48. Australia’s S&P/ASX 200 decreased by 0.4%, finishing at 9,231.00. Taiwan’s Taiex surged 1.8%, and the Sensex in India increased slightly by 0.1%.
Oil prices saw an uptick after U.S. President Donald Trump announced a rejected deal concerning Gaza by Israel. Tensions arose following reports of a possible agreement between Iran and Oman on managing the Strait of Hormuz, with Iran indicating a ban on vessels from ‘hostile countries’. Additionally, Yemeni Houthi rebels targeted a port on Yemen’s Red Sea coast, escalating fears of threats to strategic shipping lanes and potential civil war resurgence.
Brent crude rose 0.6% to $84.04 per barrel, while U.S. benchmark crude increased 0.5% to $78.58 per barrel.
In U.S. markets, stocks climbed and Treasury yields dropped after reports that employers reduced 23,000 jobs unexpectedly last month. This weakening job market increased likelihood of postponed Federal Reserve interest rate hikes aimed at countering inflation.
U.S. stock indices posted gains, marking a second consecutive week of positive movement. The S&P 500 achieved a 0.6% rise to 7,757.64, reaching a new all-time high. The Dow Jones Industrial Average advanced 0.3% to 54,036.93, nearing its record. Additionally, the Nasdaq composite jumped 1.3%, hitting 26,690.62.
Though jobs data dimmed one of the economy’s stronger segments, apprehension regarding household spending amidst high inflation grew. Revised figures for June and May job counts reduced payrolls by a total of 103,000 for those months.
Technology stocks largely drove the broader market rally. Nvidia rose 2.3% and Broadcom increased 1.7%.
The 10-year Treasury yield fell to 4.64% from 4.67% following the jobs report, previously dropping to 4.60% before a slight recovery. For the two-year Treasury, which more accurately measures potential Federal Reserve rate action, the yield decreased to 4.20% from 4.22%. It briefly dropped to 4.15% before edging back up.
This week, several crucial inflation metrics will be released. Foremost among them is the Consumer Price Index (CPI), assessing consumer costs. Inflation for July is predicted to have risen at a 3.4% rate, down from June’s 3.5%. Year-to-date, inflation has stubbornly stayed above the 3% mark.
In currency dealings early Monday, the U.S. dollar ascended to 158.37 Japanese yen from 157.71 yen. The euro declined to $1.1553 from $1.1568.
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