Asia-Pacific Markets Open Higher After Last Week’s AI Concerns
Asia-Pacific markets opened higher today, November 9, 2024, following declines last week driven by valuation concerns surrounding artificial intelligence stocks.
Japan’s Nikkei 225 advanced 0.48%, and the Topix rose 0.37%, with yields on 10-year Japanese government bonds reaching 1.69%, the highest level since October. South Korea’s Kospi climbed 1.69%, boosted by gains in banking and insurance sectors, while the Kosdaq remained largely unchanged. Australia’s S&P/ASX 200 began the day up 0.25%. However, Hong Kong markets are expected to open lower, as indicated by Hang Seng index futures at 26,121, below the HSI’s previous close of 26,241.83.
The positive movement follows the release of Chinese inflation data over the weekend, which showed headline consumer inflation at 0.2% year-on-year, exceeding expectations of zero growth, according to a Reuters poll of economists. Wholesale inflation experienced a smaller-than-anticipated decrease of 2.1% year-on-year, compared to the predicted 2.2% decline. These figures are closely watched as indicators of China’s economic health, a key driver of global growth. Investors are also monitoring China’s economic policies for further direction.
Yesterday, in the United States, the Nasdaq Composite continued its downward trend, but the Dow Jones Industrial Average and S&P 500 saw modest gains after Senate Minority Leader Chuck Schumer proposed a new plan to Republicans aimed at ending the ongoing U.S. government shutdown. A University of Michigan survey revealed that consumer sentiment in the U.S. has neared its lowest recorded level, and data from Challenger, Gray & Christmas indicated that October saw the highest number of layoff announcements for the month in 22 years – a sign of potential economic slowdown. You can find more information about US employment statistics on the Bureau of Labor Statistics website.
Officials are expected to continue negotiations to avert a prolonged government shutdown, while investors will be closely analyzing upcoming economic data for further insights into the global economic outlook.
Citizens are shopping at a supermarket in Nanjing, East China’s Jiangsu province, on March 9, 2024.Â
Costfoto | Nurphoto | Getty Images
Asia-Pacific markets opened higher Monday, after artificial intelligence valuation concerns fueled declines in markets across the region last week.
Investors in Asia are also parsing October inflation data from China over the weekend, which came in above expectations.
Headline consumer inflation was at 0.2% year on year, compared to expectations of zero growth from economists polled by Reuters. Wholesale inflation saw a softer-than-expected drop of 2.1% year on year, against the expected 2.2% decline.
Japan’s Nikkei 225 advanced 0.48%, while the broad-based Topix was up 0.37%. Yields of 10-year Japanese government bonds inched up to 1.69%, their highest since October.
South Korea’s Kospi climbed 1.69%, led by banks and insurance stocks, while the small-cap Kosdaq was flat.
Australia’s S&P/ASX 200 started the day up 0.25%.
However, Hong Kong markets look set to fall, with Hang Seng index futures at 26,121, lower than the HSI’s last close of 26,241.83.
On Friday stateside in the U.S., the Nasdaq Composite continued to fall, but the Dow Jones Industrial Average and S&P 500 inched into positive territory after Senate Minority Leader Chuck Schumer offered up a new plan to Republicans that would enable the record-breaking U.S. government shutdown to end.
A survey from the University of Michigan revealed Friday that consumer sentiment in the country has neared its lowest level ever. The data comes just a day after firm Challenger, Gray & Christmas reported that layoff announcements in October reached their highest level for the month in 22 years.
—CNBC’s Sean Conlon and Pia Singh contributed to this report.
