The Asian markets experienced gains today, following a rally in technology stocks on Wall Street. The Nikkei 225 in Japan saw a slight decrease of 0.13%, while the Topix fell 0.21%. Conversely, South Korea’s Kospi rose 0.76% and the Kosdaq traded 0.30% higher. Hong Kong’s Hang Seng index futures also stood higher at 17,943, compared to its previous close of 17,778.07. Australia’s S&P/ASX 200 saw a modest increase of 0.26%.
Meanwhile, the US stock market indices saw a positive end to the day, with the Nasdaq rallying over 1% led by heavyweight Microsoft shares, which reached a record high. The Dow Jones Industrial Average gained 203.76 points, or 0.58%, while the S&P 500 jumped 33.36 points, or 0.74%. The Nasdaq Composite ended 159.05 points, or 1.13%, higher. Notably, Microsoft’s share price rose 2% as the company announced the hiring of prominent artificial intelligence executives. Additionally, Nvidia shares also experienced a surge, closing at an all-time high.
The US dollar has dipped below its 200-day moving average against a basket of major currencies, including the euro, due to expectations of lower interest rates next year. The dollar index fell 1.9% last week alongside a rally in US Treasuries and decreased a further 0.5% overnight to 103.44. The euro, on the other hand, reached a three-month high of $1.0952 against the dollar. The yuan also experienced a boost to a three-month high against the dollar.
Overall, these market movements indicate a positive and optimistic start for the week, driven by technology stocks and positive investor sentiment. Market participants will also be closely watching the upcoming US Federal Open Market Committee meeting minutes and existing home sales data for further insights into market trends.
1. What caused the gains in the Asian markets?
The Asian markets saw gains due to a rally in technology stocks, which was driven by positive movements in the US market.
2. How did US stocks perform?
US stocks had a positive day, with the Nasdaq rallying over 1% led primarily by gains in Microsoft shares, which reached a record high.
3. Why did the US dollar drop?
The US dollar dropped because of expectations that US interest rates will fall next year. This led to a decrease in the dollar’s value against major currencies such as the euro and the yuan.
4. What should investors watch for in the coming days?
Investors should pay attention to the upcoming US Federal Open Market Committee meeting minutes and existing home sales data, as these will provide valuable insights into market trends and potential future movements.