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What’s happening: Asian stock markets recorded gains on Monday, rebounding from losses logged last week.
What happened: Regional stocks started the week on a positive note, mirroring the gains recorded by Wall Street stocks on Friday.
A sharp rise in tech stocks helped the Nasdaq 100 surge to a record high closing on Friday.
Why it matters: US stock markets closed mostly higher on Friday, with the Nasdaq 100 gaining 1.1% to hit a record of 16,920.79, as Nvidia’s shares surged around 2.6% to breach the key $1,000 level, following stronger-than-expected quarterly results.
Speculations of a delay by major central banks in cutting their benchmark interest rates weighed on the Asian markets last week, with markets mostly pricing out chances of a rate cut by the US Federal Reserve in September. US stock markets remained closed Monday for the Memorial Day holiday.
Stock markets in China closed higher after recording losses last week, following an improvement in industrial profits. Profits earned by Chinese industrial firms jumped 4.3% year-over-year to 2,094.69 billion yuan during the first four months of 2024, at the same pace as the earlier period.
However, fading optimism around China’s latest stimulus measures limited the overall gains for the markets.
Meanwhile, Hong Kong’s trade deficit shrank to $10 billion in April, from $36.6 billion in the year-ago month, as exports grew more than imports. Exports rose 11.9% year-over-year to $378.7 billion, while imports grew by 3.7% to $388.9 billion.
Hong Kong’s Hang Seng Index jumped 1.17% to settle at 18,827.35, while China’s Shanghai Composite climbed 1.14% to close at 3,124.04 on Monday.
Data from Japan showed the index of leading economic indicators rose to 112.2 in March, compared to a flash reading of 111.4. Japan’s Nikkei 225 gained 0.66% to close at 38,900.02 on Monday.
South Korea’s KOSPI jumped 1.32% on Monday, driven by gains in technology shares. India’s S&P BSE Sensex bucked the trend by declining 0.03% to close at 75,390.50, after hitting record highs of 76,009.68 during the session.
What to watch: Investors await the release of several major economic reports this week. Data on inflation, retail sales and industrial production from Japan will be released this week, while manufacturing and non-manufacturing PMI reports from China are also scheduled for the week.
Context: Bitcoin prices moved higher, surging past the key $70,000 mark during Monday’s session.
Details: The US Securities and Exchange Commission (SEC) announced the approval for key regulatory filings related to Ether ETFs on Thursday. With the second most valuable cryptocurrency gaining around 20% in the previous week, prices tracked lower following the approval news. Ether prices rebounded to begin this week on a positive note.
Bitcoin, the largest and most popular cryptocurrency by market cap, also recorded gains on Monday.
Weakness in the US dollar provided support to the demand for cryptocurrencies. The US dollar index, which measures the greenback’s performance versus a basket of major peers, slipped 0.13% to 104.59 on Monday.
Bitcoin surged past the key $70,000 level on Monday, gaining around 2%, while Ethereum breached the $3,900 level.
What to watch: Investors await the release of PCE price index from the US on Friday, which is expected to impact crypto prices ahead. The US core PCE price index, which increased by 2.8% from the prior year in March, is expected to rise gain by 2.8% in April. The personal consumption expenditure price index in the US is projected to rise by 0.3% in April, the same pace as in the earlier month.
Other Markets: European indices closed mostly higher on Monday, with the DAX 40, CAC 40 and STOXX Europe 600 Index up by 0.44%, 0.46% and 0.32%, respectively, and the FTSE 100 down by 0.26%.
Spain announced plans to provide €1 billion in military aid to help Ukraine in its ongoing war with Russia. The news sent the RUB/USD pair lower in forex trading this morning.
Thailand’s unemployment rate rose to 1.01% in the first quarter, from 0.81% in the prior quarter, exerting pressure on the THB/USD forex pair.
Australia’s retail sales grew by 0.1% in April, recovering from a 0.4% decline in the previous month, which sent the AUD/USD pair higher in forex trading this morning.
Canada’s wholesale sales grew by 2.8% in April, after a 1.1% decline in the earlier month, which lent support to the CAD/USD forex pair.
Germany’s wholesale prices, France’s initial jobless claims and unemployed persons, UK’s CBI distributive trades, Brazil’s mid-month consumer price inflation, producer prices and nonfarm payrolls, Canada’s producer price inflation, raw materials price index and CFIB’s business barometer, US Case Shiller home price index, FHFA house price index, Dallas Fed manufacturing index and money supply M2, as well as Saudi Arabia’s money supply M3 and value of loans.
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