Asian Markets Rise Despite Tech Stock Slump on Wall Street
Asian markets, excluding Shanghai, rose on Monday, shrugging off the gloom on Wall Street after major technology stocks experienced their worst week since the COVID-19 crash of 2020.
Hong Kong's Hang Seng led the region, surging 1.8%. Tokyo's Nikkei 225 climbed 1%, and South Korea's Kospi jumped 1.3%.
The S&P 500 dropped 0.9% on Friday, marking its third consecutive losing week. The Dow Jones rose 0.6%, while the Nasdaq fell 2%.
Tech stocks were the worst performers, with Super Micro Computer losing 23.1% and Nvidia slumping 10%.
The larger threat was the dawning realization that interest rates may stay high for longer, hurting investments. Fed officials said they could hold rates at their high level for a while, dashing hopes of cuts this year.
High rates make it harder for companies to grow profits, putting pressure on them to deliver. Netflix sank 9.1% despite reporting stronger profits, as it will stop giving subscriber updates every three months.
In the oil market, U.S. benchmark crude oil shed 92 cents to $81.30 per barrel. A barrel of Brent crude gave up 95 cents to $86.35 per barrel.