Asian shares experienced mixed performance on Monday, with most markets declining while Tokyo’s benchmark Nikkei 225 index reached another record high during morning trading.
The Nikkei 225 surged by 0.5% to reach 39,309.76, extending its record-breaking streak. Trading in Tokyo was closed on Friday due to a holiday, and the benchmark had previously achieved an all-time high on Thursday.
In currency trading, the dollar slightly strengthened against the Japanese yen, edging up to 150.49 yen from 150.47 yen. The euro also saw a slight decline, costing $1.0818 compared to $1.0823.
The attraction of Japanese shares to foreign investors is partly due to the weakness of the yen, according to Stephen Innes of SPI Asset Management. Meanwhile, profit-taking activities were observed in Chinese markets following recent gains after a prolonged slump.
In other parts of Asia, Hong Kong’s Hang Seng index dipped by 0.7% to 16,606.31, and the Shanghai Composite dropped by 0.7% to 2,984.74. Australia’s S&P/ASX 200 remained relatively unchanged, inching down less than 0.1% to 7,641.50, while South Korea’s Kospi slipped by 0.8% to 2,647.34.
On Wall Street, Friday concluded the week with a record high, primarily driven by the strong performance of the technology sector. However, some technology company shares experienced weakness or minimal changes, such as Nvidia.
The S&P 500 index reached another record high, rising less than 0.1% to 5,088.80, marking its sixth winning week in the last seven. The Dow Jones Industrial Average also rose by 0.2% to 39,131.53, while the Nasdaq slipped by 0.3% to 15,996.82.
This week, earnings reports remain a focal point, providing insights into the direction of the U.S. and global economies. Key U.S. companies reporting results include home improvement retailer Lowe’s, discount retailer Dollar Tree, computer maker HP, and electronics retailer Best Buy.
Additionally, upcoming economic data will cover consumer sentiment, inflation, and the pace of growth in the United States in the October-December quarter, with an update scheduled for Wednesday.
Traders are closely monitoring inflation trends, with previous data indicating higher-than-expected consumer and wholesale prices. As a result, expectations for a Federal Reserve rate cut have shifted to June instead of March.
In energy trading, benchmark U.S. crude lost 42 cents to trade at $76.07 a barrel on the New York Mercantile Exchange, while Brent crude, the international standard, dropped by 40 cents to $80.40 a barrel.
