Asian shares were mostly higher on Monday after U.S. stocks recovered from Wall Street’s worst day since April and rose throughout the week.
U.S. futures fell, but oil prices rose.
Tokyo’s Nikkei stock average rose 0.3% to 38,758.96, while Seoul’s KOSPI added 0.7% to 2,705.87.
Australia’s S&P/ASX 200 rose 0.7 percent to 2,705.87 and the Shanghai Composite Index rose 0.3 percent to 3,097.86 after the government said corporate profits rose 4.3 percent in April from a year earlier.
Hong Kong’s Hang Seng Index fell 0.2% to 18,576.65.
Taiwan led the gains, with heavy buying of computer chip stocks helping push its index up 1.3% to a record high. Semiconductor company MediaTek, which makes chips for wireless communications, high-definition TVs and handheld mobile devices, rose 8.4%.
Taiwan Semiconductor Manufacturing Co. (TSMC) rose slightly, up 0.5%.
“A strong global semiconductor cycle is positive for Taiwan’s growth prospects,” ANZ’s Raymond Yun and Bansi Madhvani wrote in a research note. “The global semiconductor cycle is buoyed by advances in artificial intelligence applications, cloud computing and 5G communications technology,” they said.
On Friday, the S&P 500 rose 0.7% to 5,304.72, clawing back all of the losses from the previous two days, and is up only slightly this week, extending its weekly gain to five and remaining just below the record high recorded on Tuesday.
The Dow Jones Industrial Average rose less than 0.1%, to 39,069.59, and the Nasdaq Composite rose 1.1%, to 16,920.79, surpassing the all-time high it hit earlier this week.
Nvidia rose another 2.6% on Friday, making it the biggest driver of the S&P 500’s gains.
This week’s stock market volatility is due to another Nvidia reports astounding profitsNvidia has soared to become one of Wall Street’s most powerful stocks amid a frenzy over artificial intelligence technology. While the frenzy over AI has driven some stocks to heights that critics say are overdone, Nvidia Impressive growth And further projections suggest that this is likely to continue.
The overall U.S. economy shows that U.S. household spending remains strong, but the numbers below the surface are It may not be so encouraging.
On Friday, markets rose slightly on a report that overall sentiment among U.S. consumers in May was not as weak as preliminary data had suggested. Perhaps more importantly, the University of Michigan report also said that U.S. consumers’ inflation expectations for the year ahead did not rise as much in May as initially feared.
Doing so could help stave off a vicious cycle in which American households’ inflation expectations rise and they take actions that only make inflation worse.
The volatile trading this week was driven by concerns over stubbornly high inflation after the index rose. Recent RecordsIt began with the cut in interest rates announced by the Federal Reserve on Wednesday. Minutes of the last policy meetingIt indicated some officials were talking about the possibility of raising interest rates if inflation worsens.
Stock prices fell further. Thursday Report This shows that the US economy is doing better than expected. strength That could really scare Wall Street, as upward pressure on inflation could continue.
That could delay cuts to the Federal Reserve’s key interest rate, which is at its highest in more than two decades, as the central bank tries to navigate the tricky task of slowing the economy enough to keep high interest rates in check, but not so much that it crushes the job market.
Those concerns sent Treasury yields higher last week, but they were little changed Friday after the consumer confidence report. The 10-year Treasury yield fell to 4.46% from 4.48% late Thursday. The 2-year yield, which better reflects expectations of Fed action, was flat at 4.94%.
Benchmark U.S. crude rose 21 cents to $77.93 a barrel in electronic trading on the New York Mercantile Exchange, after gaining 85 cents on Friday.
Brent crude, the international standard, rose 21 cents to $82.05 a barrel.
In the foreign exchange market, the US dollar fell from 156.99 yen to 156.77 yen.
The euro rose to $1.0851 from $1.0844.
