Stocks
Asian Markets Gain as Investors Bet on Fed Rate Cut Amid Job Figures
Most Asian markets climbed on Monday following data indicating fewer US jobs were created last month, renewing optimism that interest rates may be cut this year. Mainland Chinese equities also bounced on hopes for fresh government economic support.
A tech rally propelled the Nasdaq, leading Wall Street up after Friday’s non-farm payrolls figures. The data helped allay concerns that high inflation figures earlier in the year would keep borrowing costs at elevated levels.
April’s NFP report revealed 175,000 new jobs, significantly lower than the previous month and falling short of expectations. Wage growth was also slightly lower than forecast.
While the figures indicated a slowdown in the world’s second-largest economy, they did not raise fears of an impending recession.
The news increased bets on the Fed cutting rates in September, with investors revising their outlook. However, the anticipated rate cuts remain below the six initially envisaged at the start of the year.
“The softer wage growth and a slight increase in unemployment may ease some of the Federal Reserve’s concerns about implementing rate cuts this summer,” said Stephen Innes at SPI Asset Management.
Wall Street’s gains on Friday, along with another record for London, provided Asian investors with a positive lead, prompting most markets to follow suit.
Shanghai stood out as mainland investors returned from a long break, catching up with the global rally of the past few days. Traders also welcomed reports of potential measures to support China’s property sector and provide fresh support to the economy.
Market sentiment appeared to be incrementally improving, with factors such as improving traveler figures, market reforms, and strong corporate releases cited by Nicholas Yeo of abrdn.
Hong Kong extended recent gains into a tenth successive trading day, while Sydney, Singapore, Taipei, and Manila also posted gains. Wellington and Jakarta experienced slight declines.
The dollar strengthened against the yen, recovering some of the losses it incurred Friday following the US jobs report. The Japanese unit had a volatile week, hitting its weakest level in 34 years, prompting reported intervention in forex markets by authorities on Monday and Wednesday.
– Key figures around 0300 GMT –
Hong Kong – Hang Seng Index: UP 0.2 percent at 18,505.51
Shanghai – Composite: UP 1.0 percent at 3,135.57
Tokyo – Nikkei 225: Closed for a holiday
Dollar/yen: UP at 153.75 yen from 152.99 yen on Friday
Euro/dollar: DOWN at $1.0765 from $1.0767
Pound/dollar: UP at $1.2549 from $1.2546
Euro/pound: UP at 85.79 from 85.78 pence
West Texas Intermediate: UP 0.4 percent at $78.38 per barrel
Brent North Sea Crude: UP 0.3 percent at $83.19 per barrel
New York – Dow: UP 1.2 percent at 38,675.68 (close)
London – FTSE 100: UP 0.5 percent at 8,213.49 (close)
Reviewing the U.S. Stock Markets, the Nasdaq Composite, recorded a decent loss of 1,023 points, reaching a closing value of 16,690 points by the end of the week. Similarly, the S&P 500 index showed a positive trend, losing 240 points to settle at 5,408 points. Meanwhile, DJIA Index experienced a notable hike, adding 1,218 points during the week and concluding at 40,345 points after a week of gaining.
In contrast, Russell 3000 Index saw a loss in week performance, with a slight drop of 141 point to reach 3,077 points by the end of the week.
Moving to Russell 2000 Index, demonstrated a notable lost of 126 points, ending the week at 2,091 points.
In the Outgoing week, the European stock market displayed a mixed performance.
Here is the data on the weekly performance of the European Stock Market, The STOXX Europe 600 index, which is considered a leading benchmark for the European market and covers approximately 90 percent of the market capitalization across 17 countries, reported a loss of 18.49 points to close at 506.56.
The United Kingdom’s FTSE 100, one of the most widely followed indices in Europe, also showed a significant drop, losing 195 points or finishing the session at 8,181.
In Germany, the DAX 30 index, added by 605 points to reach 18,301, while France’s CAC 40 decreased by 278 points to stop at 7,352 at the end of the trading day.
Italy’s FTSE MIB, which covers the top 40 stocks traded on the Milan Stock Exchange, decreased by 1,081 points to 33,291. However, Spain’s IBEX 35, lost by 228 points, to close at 11,173.
A review of South Asian stock markets shows that India’s Bombay Stock Exchange (BSE) index BSE Sensex has lost 1,182 points during the week. At the end of the week, the index stood at 82,365 points. On the other hand, the Nifty-50 index of the country’s National Stock Exchange dropped by 383 points last week. At the end of the week, the index stood at 24,852 points.
Pakistan Stock Exchange Index ‘KSE 100’, added 459 points last week. After a week of losing, the index settled at 79,002 points.
On the other hand, The Sri Lankan stock market index loss, and the Colombo Stock Exchange index ‘ASPI’ decreased by 94 points in a week. After a week the index settled at 10,775 points.
Bhutan’s stock market index ‘BSI’ dropped by 9 points hence the index stood at 1,500 points throughout the whole week. Nepal’s ‘NEPSE’ lost 22 points, therefore the index stands at 2,727 points.
Hence Dhaka Stock Exchange: The benchmark index ‘DSEX’ lost by 75.77 points or 1.31 percent, in the outgoing week. At the end of the week, the index stands at 5,728 points.
