(Bloomberg) — Asian stocks are poised to rise in major markets on Monday after Wall Street snapped a five-day losing streak, boosted by new demand for big technology stocks.
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Stock futures rose in Australia, Hong Kong, Taiwan and Singapore, while stock futures fell in Japan, partly reflecting a stronger yen. The Standard & Poor’s 500 index ended Friday up 1.3%, while the Nasdaq 100 index rose 1.7%, ending a sell-off that wiped out more than a trillion dollars from the US stock market.
The dollar was mixed against major currencies early Monday, after the US currency’s strength index fell on Friday for the first time in eight sessions. The yen has risen slightly against the US currency since late last week, trading around 157 yen to the dollar.
Australian government bond yields rose in early trading, echoing a move in Treasuries on Friday when the US 10-year bond yield rose four basis points.
Demand for stocks signals a renewed appetite for risk among investors after declines in last year’s final trading sessions extended into 2025. Selling pressure has now tempted some investors back to some of the mainstream themes that fueled markets in 2024, including artificial intelligence.
In Asia, the focus will be on technology stocks in light of the movements in New York trading on Friday. Hon Hai Precision Industry Co., Ltd. announced Listed in Taiwan, the assembly partner of Nvidia Corp. And Apple Inc. Foxconn, also known as Foxconn, reported better-than-expected revenue over the weekend. The results are a sign that demand for AI infrastructure remains strong.
In South Korea, a court rejected an appeal filed by Yoon Suk-yeol’s lawyers against an arrest warrant for the ousted president, according to a local media report on Sunday.
In Asia, data scheduled for Monday include China’s Caixin services, composite PMI, Thai inflation and Vietnam’s industrial production. Elsewhere, the Central Bank of Israel will release an interest rate decision, while data released includes German inflation, US factory orders, S&P Global Services and the composite PMI.
Fed comments
In the United States, Federal Reserve Governor Lisa Cook will speak at a conference on law and microeconomics at the University of Michigan. Her colleague Tom Barkin, president of the Federal Reserve Bank of Richmond, suggested on Friday that he would prefer to keep interest rates tight for longer. Comments and data showing the US economy remains strong underscore the challenge investors face in deciphering the future path of US interest rates after Federal Reserve Chairman Jerome Powell’s hawkish shift in December.
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