Asian Stocks Fluctuate After Wall Street Rebound: Markets Wrap – Yahoo Finance
(Bloomberg) — Asian stocks were volatile on Monday, supported by renewed demand for big tech stocks, after Wall Street ended a five-day losing streak.
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Australian shares rose 0.4%, but Japan's TOPIX fell in the first session after a multi-day holiday. The U.S. contract landscape remained little changed after the S&P 500 index ended Friday up 1.3%, ending a slide that wiped more than $1 trillion from the stock market.
The dollar was mixed against major currencies early on Monday, while the yen lost some of its gains from late last week and hovered around 157 yen to the dollar. Daily fluctuations in the Chinese currency are in the spotlight after the onshore yuan breached a key milestone for the first time since late 2023.
Investors are showing mixed risk appetites after last year's final selloff continued into 2025. Expected monetary policy easing and optimism regarding artificial intelligence could continue to drive gains. Still, the looming U.S.-China trade war risks damaging the rally. Investors also remain focused on further economic stimulus measures from the Chinese government.
“Policymakers expect interest rate cuts across most Asian economies in 2025,” Goldman Sachs Group analysts including Andrew Tilton said in a note. “The key exception remains Japan, where we expect reflation to remain and rate hikes to continue this year.”
In Asia, attention will be on tech stocks given Friday's New York trading moves. Taiwan-listed Hon Hai Precision Industry Co., an assembly partner of Nvidia and Apple and also known as Foxconn, reported better-than-expected earnings over the weekend. This result shows that demand for AI infrastructure remains strong.
Data released on Monday will include China's Caixin Services and Composite PMI, Thailand's inflation and Vietnam's industrial production. Elsewhere, Israel's central bank will decide on interest rates, but data to be released will include inflation in Germany and factory orders in the United States.
In South Korea, a court has rejected an appeal by Yoon Seok-yeol's lawyers against the impeached president's arrest warrant, local media reported on Sunday.
FRB comments
In the US, Federal Reserve Board member Lisa Cook will speak at the University of Michigan's Conference on Law and Microeconomics. His colleague, Richmond Fed President Tom Barkin, signaled Friday that his preference is to keep capped rates in place for an extended period of time.
These comments and data showing the U.S. economy remains strong highlight the challenges investors face in deciphering the future direction of U.S. interest rates after Fed Chair Jerome Powell's hawkish shift in December. .
Investors are also considering Donald Trump's return to the White House within two weeks.
“We need to see more of that clarity on January 20 for the market to have more confidence,” Laura Cooper, global investment strategist at Nuveen, told Bloomberg TV. “Regardless of what policies are implemented, American exceptionalism will continue to be a key theme for at least the first half of this year.”
In addition, President Joe Biden is expected to order a ban on new offshore oil and gas development across approximately 625 million acres of U.S. coastlines, and will prohibit the sale of drilling rights in the Atlantic, Pacific waters, and eastern Gulf of Mexico. I plan to exclude it.
West Texas Intermediate rose, extending gains from last week to trade near $74 per barrel. Gold was little changed at around $2,640 per ounce.
This week's main events:
China Caixin Services and Comprehensive PMI, Monday
Eurozone HCOB Services and Composite PMI, Monday
German CPI, Monday
US Factory Orders, S&P Global Services, Comprehensive PMI, Monday
Federal Reserve President Lisa Cook speaks on Monday
Eurozone CPI, unemployment rate, Tuesday
US Jobs, Trade, ISM Services, Tuesday
Richmond Fed President Thomas Barkin speaks on Tuesday
Eurozone PPI, Consumer Confidence, Wednesday
Wednesday's FOMC Minutes
Fed Director Christopher Waller speaks on Wednesday
ECB Executive Board member François Villeroy de Galhau speaks on Wednesday
China CPI, PPI, Thursday
Eurozone retail sales Thursday
BOE Vice President Sarah Breeden speaks Thursday
Japan's household expenditure, leading index, Friday
U.S. non-farm payrolls, unemployment rate, University of Michigan consumer sentiment, Friday
The main movements in the market are:
stock
S&P 500 futures were little changed as of 9:01 a.m. Tokyo time.
Japan's TOPIX rose 0.3%
Australia's S&P/ASX 200 rose 0.4%
Euro Stoxx50 futures fall 0.9%
currency
Bloomberg Dollar Spot Index little changed
The euro was almost unchanged at $1.0304.
The Japanese yen fell 0.2% to 157.53 yen to the dollar.
The offshore yuan was little changed at 7.3604 yuan to the dollar.
cryptocurrency
Bitcoin is little changed at $98,508.15
Ether fell 0.1% to $3,641.4.
bond
merchandise
This article was produced in partnership with Bloomberg Automation.
