Asian Markets Rise Despite Wall Street's Tech Stock Slump
Asian markets, excluding Shanghai, saw gains on Monday, despite a rough week for technology stocks on Wall Street. Hong Kong's Hang Seng led the region with a 1.8% increase, while Tokyo's Nikkei 225 added 1%. The Kospi in South Korea also jumped 1.3%.
The Shanghai Composite index, however, shed 0.4% after the People's Bank of China kept its loan prime rates unchanged.
The U.S. market saw its third consecutive losing week, with the S&P 500 dropping 0.9%. The Dow Jones Industrial Average rose 0.6%, while the Nasdaq composite fell 2%.
Tech stocks in the S&P 500 suffered their worst performance since March 2020, losing 7.3% for the week. This decline was attributed to several factors, including weaker-than-expected orders for major semiconductor supplier ASML and the dawning realization that interest rates may remain high for longer.
High interest rates can hurt prices for all kinds of investments, especially those seen as expensive or requiring long waits for growth, making tech stocks particularly vulnerable.
Despite the overall market decline, some individual companies saw gains. American Express rose 6.2% after reporting stronger-than-expected profits, while Fifth Third Bancorp rose 5.9% after exceeding analyst expectations.
In the oil market, U.S. benchmark crude oil shed 92 cents to $81.30 per barrel, while Brent crude gave up 95 cents to $86.35 per barrel. The price fluctuations followed concerns about fighting in the Middle East, but gains were pared as traders questioned Iran's response to the apparent Israeli drone attack.