Asian Stocks Fluctuate After Wall Street Rebound: Markets Wrap

Asian stocks experienced fluctuations on Monday following a rebound in Wall Street that ended a five-day losing streak, primarily driven by increased demand for big technology shares. Investors are displaying a mixed attitude towards risk after a series of declines at the end of the previous trading year that extended into 2025.

Market Updates

In terms of performance, shares in Australia rose by 0.4%, while Japan's Topix index fell as it resumed trading after a multi-day holiday. US equity futures were stable after the S&P 500 saw a gain of 1.3% on Friday, concluding a selloff that had erased over a trillion dollars from the market.

The dollar exhibited mixed results against other major currencies early on Monday. The Japanese yen lost some of its previous gains to trade around 157 yen per dollar. Attention is particularly focused on the daily fixing of China’s currency as the onshore yuan recently crossed a significant threshold for the first time since late 2023.

Investor Sentiment and Economic Factors

Investors are navigating a mixed sentiment towards risk following noted declines in the market. The expected easing of monetary policy and growing optimism surrounding artificial intelligence technology might continue to support market gains. However, ongoing tensions in US-China trade could pose risks to any potential rally. In addition, investors are watching closely for possible stimulus measures from Beijing.

According to analysts from Goldman Sachs, there is an expectation for interest rate cuts across the majority of Asian economies throughout 2025, with Japan being the major exception where an inflation-driven monetary policy is anticipated. Tech stocks are expected to be a focal point in Asia as they react to movements in New York's trading session.

Company Highlights and Global Economic Data

Hon Hai Precision Industry Co., commonly known as Foxconn, reported better-than-expected revenue, highlighting robust demand for AI infrastructure.

This week brings important economic data, including China’s Caixin services and composite PMI, Thai inflation statistics, and industrial production figures from Vietnam. The central bank of Israel will also announce its interest rate decision, along with data releases related to German inflation and US factory orders.

US Federal Reserve Insights

In the United States, Federal Reserve Governor Lisa Cook is scheduled to speak at a conference focused on law and microeconomics. Richmond Fed President Tom Barkin suggested a preference for keeping rates high for an extended period, which puts investors in a position to evaluate the future trajectory of US interest rates after recent hawkish comments from Fed Chair Jerome Powell.

Furthermore, President Joe Biden is planning to institute a ban on new offshore oil and gas developments across a substantial portion of US coastal regions, affecting drilling rights in both the Atlantic and Pacific oceans, as well as the eastern Gulf of Mexico.

Commodity Trends

Regarding commodities, West Texas Intermediate crude has seen a rise, trading around $74 per barrel, while gold prices remain stable at approximately $2,640 per ounce.

Key Upcoming Events

• China’s Caixin services and composite PMI, Monday
• Eurozone HCOB services and composite PMI, Monday
• Germany CPI data, Monday
• US factory orders and S&P Global services and composite PMI, Monday
• Fed Governor Lisa Cook speech, Monday
• Eurozone CPI and unemployment figures, Tuesday
• US job openings and trade data, Tuesday
• Richmond Fed President Thomas Barkin speech, Tuesday
• Eurozone PPI and consumer confidence data, Wednesday
• FOMC minutes and various Fed speeches, Wednesday
• China’s CPI and PPI announcements, Thursday
• Eurozone retail data, Thursday
• Japan’s household spending data, Friday
• US nonfarm payrolls and consumer sentiment metrics, Friday

Stocks, Market, Economy