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South Korea's Kospi index was up 2.9% while Japan's Nikkei 225 was up 0.2%. MSCI's Asia Pacific Index was increasing 0.3% with over two shares rising for every one which declined.
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Asian shares gained on Monday while oil prices edged lower.
South Korea's Kospi index was up 2.9% while Japan's Nikkei 225 was up 0.2%. MSCI's Asia Pacific Index was increasing 0.3% with over two shares rising for every one which declined.
Sentiment toward chipmakers remained robust with Nvidia Inc.’s server assembly partner Hon Hai Precision Industry Co. reporting stronger-than-expected sales. SK Hynix Inc. shares rose 1.4% ahead of this week’s listing of $29 billion American depositary receipts. Samsung Electronics Co. jumped 4% after a report said the company’s considering increasing some chip prices.
Oil slipped as energy flows through the Strait of Hormuz persisted and OPEC+ signaled higher supplies. Brent slipped 0.7% to $71.65 a barrel as shipping through the US-protected corridor in the waterway showed signs of recovering. OPEC+ members also backed another modest rise in collective quotas for next month. The dollar and Treasuries were little changed in early trading.
Markets entered the second half of the year on a cautious footing as investors weigh the fallout from the Iran war’s energy shock and whether the AI-driven rally can be sustained. Following last week’s recovery from a two-day rout in chipmakers, attention has shifted to earnings season for signs that massive spending on artificial intelligence infrastructure is translating into profits.
Tech stocks remain in focus after losses last week in the US were fueled by concerns that the AI-driven rally had run ahead of itself. Sentiment appeared to stabilize with equity-index futures for Wall Street gauges holding their gains from Friday, when the US markets were shut for a holiday.
Futures for the S&P 500 Index rose 0.5%, while those for the Nasdaq 100 climbed 1.2%.
In other corners of the market, gold gave up its initial gains to trade around $4,175 an ounce. Silver rose 0.4% to about $62.74 an ounce.
Meanwhile, Goldman Sachs Group Inc. revised its yen forecast to 165 per dollar in a year’s time from 155 previously. The Japanese currency traded at 161.54 per dollar in early Asian trading.
The won was also in focus. The Korean currency was little changed after rebounding late Friday from its weakest level against the dollar since 2009 after a person familiar with the matter said the nation’s officials were preparing for currency flows related to SK Hynix’s ADR offering.
The move to 24-hour trading for the currency is the centerpiece of Seoul’s years-long push to improve foreign investors’ access to local markets and bolster the case for an upgrade to MSCI Inc.’s developed-market index.
Treasuries were steady as cash trading resumed following Friday’s holiday. The US sovereign debt market faces a test of investor demand for longer maturities this week, with auctions of 10- and 30-year Treasuries highlighting an otherwise light week for economic events.
The auctions come as minutes from the Fed’s June meeting will be closely parsed after Chair Kevin Warsh tempered his hawkish inflation stance last week. Traders trimmed expectations that a hike was imminent following softer-than-expected jobs data and Warsh’s comment that inflation pressures had eased.
With inputs from Bloomberg
