In a significant uplift driven by technology stocks, Asian markets experienced broad gains, setting the stage for a week packed with pivotal events, including Federal Reserve Chair Jerome Powell’s congressional testimony and the commencement of China’s National People’s Congress.
The surge in tech equities, led by heavyweights Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., outshine the regional stock gauge. This upswing was mirrored in Japan’s Nikkei-225 Stock Average, which notably surpassed the 40,000 marks for the first time, and South Korea’s Kospi index, which climbed as much as 1.5%. These advancements followed a robust rally in U.S. counterparts on Friday, signaling a positive momentum in global tech markets.
Charu Chanana, a strategist at Saxo Capital Markets in Singapore, commented on the Nikkei 225’s breakthrough, highlighting it as a crucial psychological level that may introduce volatility but is ultimately seen as a bullish indicator amid favorable structural factors and continued yen weakness.
In anticipation of China’s 14th National People’s Congress, an annual key parliamentary gathering set to begin Tuesday, Chinese stocks showed fluctuating movements. The healthcare sector saw a jump in stocks, fueled by expectations of further stimulus measures to support the economy.
Kinger Lau, a strategist at Goldman Sachs Group Inc., shared an optimistic outlook on Bloomberg Television regarding China’s market potential. He projected a decent earnings growth of about 8%-10% for the year, buoyed by low valuations and anticipated policy support from the National People’s Congress, suggesting a strong setup for market performance in the coming months.
The global oil market steadied near this year’s highest levels after OPEC+ decided to extend its production cuts, aiming to prevent a global crude surplus. U.S. crude maintained its position around $80 a barrel in Asia, marking its first reach to this level in nearly four months on Friday.
In the bond market, Treasuries experienced a slight decline, while Japanese bonds remained stable as investors processed reports of the government considering an official declaration of the end to deflation. Currency markets saw the dollar trading in tight ranges against its Group-of-10 counterparts.
Adding to the market dynamics, the Adani Group initiated marketing for its first dollar bond since the critical report by short-seller Hindenburg Research, to restore investor confidence.
The week ahead promises to be eventful, with market participants keenly awaiting Powell’s congressional testimony, key data releases, and developments from China’s National People’s Congress. These events are expected to further shape market trends and investor sentiment as the global financial landscape navigates through a period of macroeconomic uncertainty and technological innovation.
