This is CNBC’s live blog covering the Asia-Pacific market.
Asia-Pacific markets are set to extend their gains from Monday as tech stocks rebound on Wall Street and investors focus on preliminary data on business activity in Australia, Japan and India.
S&P Global figures show Australia’s composite Purchasing Managers Index stood at 53.6, the highest level in two years, compared with 53.3 in March.
PMI figures for Japan and India will be released later on Tuesday.
S&P/ASX 200 futures have a stronger opening price of 7,693 compared to the closing price of 7,649.2.
Japan’s Nikkei Stock Average is also expected to rise, with Chicago and Osaka futures both at 37,740, compared to the index’s last close of 37,438.61.
Hong Kong’s Hang Seng Index futures were at 16,681, indicating a weak opening compared to the HSI’s closing price of 16,511.69.
Overnight in the US, the S&P 500 and Nasdaq Composite snapped six-day losing streaks and rose 0.87% and 1.11%, respectively, while the Dow Jones Industrial Average rose 0.67%.
Chipmaker and artificial intelligence favorite Nvidia rose 4.4%, rebounding from last week’s nearly 14% decline, its worst since September 2022. Arm Holdings also rebounded nearly 7% on Monday.
US oil prices fell after Iran said it would not escalate its conflict with Israel. The U.S. Federal Reserve has held off on cutting interest rates as investors worry that rising oil prices could contribute to inflation.
—CNBC’s Brian Evans and Jesse Pound contributed to this report.
US crude oil hovers around $83 after Iran says it will not escalate conflict with Israel
A U.S. flag is displayed at Tesoro’s Los Angeles refinery.
Oil futures fell slightly on Monday after Iran said it would not escalate its conflict with Israel.
The May West Texas Intermediate contract fell 29 cents to settle at $82.85 per barrel, and the June Brent futures contract fell 29 cents to settle at $87 per barrel. U.S. crude oil and Brent fell 3% last week. The two benchmarks are up nearly 16% and 13%, respectively, this year.
Iranian Foreign Minister Hossein Amirabdollahian told NBC News that his country would not respond to Israel’s retaliatory strikes, which began Friday.
— Spencer Kimball
Ned Davis Research says investors should reduce exposure to U.S. Treasuries
US savings bonds.
Investors should reduce their exposure to U.S. Treasuries as it looks increasingly likely that the Federal Reserve will postpone interest rate cuts, according to Ned Davis Research.
Joseph Kalish, the fund’s chief global macro strategist, said in a note to clients that NDR is reducing its exposure to U.S. Treasuries in its global fixed income allocation model from an overweight position to a market weight position.
“Last week’s flight to safety allowed U.S. Treasuries to temporarily outperform. However, fundamentals and technicals continue to work against U.S. Treasuries relative to other economies. U.S. Economy “The economy remains strong, inflation is sticky, and the Fed continues to push back the timing of rate cuts,” the memo said.
Investors should replace that exposure with increased exposure to European and Japanese bonds, according to Ned Davis Research.
— Jesse Pound
Gold hits a one-week low
Gold futures fell on Monday, their fastest decline in three sessions.
Bullion prices hit a low of $2,344.70 an ounce early Monday, the lowest price since April 15th. The VanEck Gold Miners ETF (GDX) also had its worst day since February 13th..
— Brian Evans, Nick Wells
