Asian Markets Rise, Tracking Wall Street Rebound After Volatile Week

Asian Markets Rise, Tracking Wall Street Rebound After Volatile Week

Asian Markets Rise Following Wall Street Rebound

Asian stock markets mostly climbed on Monday, mirroring the rebound on Wall Street after its worst day since April. The Nikkei 225 in Tokyo gained 0.7%, the Kospi in Seoul jumped 1.2%, and the S&P/ASX 200 in Australia surged 0.8%.

In China, the Shanghai Composite index rose 0.6% after the government reported a 4.3% year-on-year increase in corporate profits for January-April.

Taiwan's Taiex ended 1.1% higher, reaching a new record, fueled by strong buying of computer chip-related shares. MediaTek, a semiconductor company, saw its stock jump 7.5%.

Analysts attributed the positive sentiment to the robust global semiconductor cycle, driven by advancements in artificial intelligence, cloud computing, and 5G technology.

Wall Street Recovers After Volatile Week

The S&P 500 gained 0.7% on Friday, recouping all losses from the previous two days and extending its weekly winning streak to five. The Dow Jones Industrial Average rose slightly, while the Nasdaq composite gained 1.1%, surpassing its all-time high set earlier in the week.

Nvidia's continued rise, fueled by the artificial intelligence frenzy, was the biggest driver of the S&P 500's upward movement.

Despite concerns about inflation and potential interest rate hikes, the market received a boost from a report showing a smaller-than-expected decline in consumer sentiment and lower inflation expectations.

Economic Concerns Remain

The strong U.S. economy, while positive overall, raises concerns about sustained inflation and potential delays in interest rate cuts. Treasury yields climbed last week but remained stable on Friday following the consumer sentiment report.

Oil prices rose slightly, with U.S. benchmark crude oil gaining 25 cents and Brent crude adding 24 cents. The U.S. dollar weakened against the Japanese yen but strengthened against the euro.