TOKYO (AP) — Asian stocks rose Monday amid optimism on Wall Street for a bull run that ended the week, even as all eyes were on the Federal Reserve’s policy meeting scheduled for later this week. has risen.
Sydney’s S&P/Australian Stock Exchange 200 index rose 0.6% in early trade to 7621.40. South Korea’s Kospi rose nearly 1.0% to 2,681.73. Hong Kong’s Hang Seng Index rose 1.2% to 17,859.39, while the Shanghai Composite Index rose 0.6% to 17,859.39.
The Tokyo market was closed for trading due to the Japanese holiday “Showa Day.” A series of holidays known as Golden Week are approaching in Japan until Monday.
Stephen Innes, managing partner at SPI Asset Management, said the mood in the market had turned positive after last week’s tech-driven rally on Wall Street.
A recent series of strong financial results have boosted market sentiment, but a weaker yen could be a risk factor, he added.
“Investors will be closely monitoring the latest developments in the highly volatile depreciation of the Japanese yen against the US dollar and other major currencies,” Innes said.
The yen hit a new 34-year low after the Bank of Japan decided to keep interest rates unchanged on Friday. This was expected, but what was unexpected was that the central bank clearly had no serious concerns about the exchange rate, Innes added.
In Monday’s currency trading, the U.S. dollar rose slightly to 159.17 yen from 158.30 yen. The euro rose to $1.0716 from $1.0699.
For Japan’s big exporters like Toyota Motor Corporation, a weaker yen could be a boon, boosting the value of overseas earnings when converted into yen.
However, a weaker currency can have a negative impact on the economy in the long run, as it reduces purchasing power and the potential for wage increases. Japan imports almost all of its energy.
Stocks ended a relatively strong week on Wall Street on Friday, with the S&P 500 rising 1% to end the winning week for the first time among the last four stocks.
The Dow Jones Industrial Average rose 153 points, or 0.4%, and the Nasdaq Composite Index rose 2%.
Recent data on US inflation has led analysts to expect the Federal Reserve to keep interest rates on hold. Key interest rates remain at their highest levels since 2001. report Inflation rates released on Friday showed they remained high.
After previously suggesting three rate cuts could occur this year, Fed officials later said: It is possible to maintain the main interest rate Inflation remains high for some time to ensure that it falls towards the 2% target.
U.S. Treasury yields fell sharply in the bond market on Friday following reports on inflation. The yield on the 10-year U.S. Treasury note fell to 4.66% from 4.71% late Thursday. Two-year Treasury yields, which are more closely tied to Fed expectations, stabilized. It decreased slightly from 5.00% to 4.99%.
Overall, the S&P 500 rose 51.54 points to 5,099.96. The Dow rose 153.86 points to 38,239.66 and the Nasdaq rose 316.14 points to 15,927.90.
In energy trading, benchmark U.S. crude oil fell 80 cents to $83.05 a barrel. Brent crude, the international standard crude, fell 91 cents to $88.59 a barrel.
