Markets in Asia, with the exception of Shanghai, showed positive momentum on Monday, disregarding the downturn on Wall Street where major technology stocks experienced their worst week since the onset of the COVID-19 pandemic in 2020.
Oil prices saw a decline while U.S. futures made gains.
The Hang Seng index in Hong Kong led the region, surging by 1.6% to 16489.08. Conversely, the Shanghai Composite index dropped by 0.5% to 3,050.89 following the decision by the People's Bank of China to maintain its 1-year and 5-year loan prime rates.
In Tokyo, the Nikkei 225 index rose by 0.4% to 37,219.47, accompanied by a weakening yen. The U.S. dollar strengthened against the yen, reaching 154.69 from 154.59, marking levels not seen since 1990.
The Kospi in South Korea saw a notable increase of 0.8% to 2,613.61, while Australia's S&P/ASX 200 surged by 1% to 7,640.30.
On Friday, the S&P 500 closed with a 0.9% decline, marking its third consecutive week of losses. The index settled at 4,967.23, which is 5.5% below its recent record set at the end of last month.
The Dow Jones Industrial Average experienced a 0.6% increase, reaching 37,986.40, while the Nasdaq composite fell by 2% to 15,282.01.
Several top-performing stocks faced significant losses, including Super Micro Computer, which plummeted by 23.1%. Nvidia, another high-flying stock, also saw a decline of 10%, exerting substantial downward pressure on the S&P 500.
Technology stocks within the S&P 500 collectively experienced a 7.3% decline for the week, the worst performance since March 2020, as some industry giants reported concerning trends. ASML, a key supplier to the semiconductor sector, revealed weaker-than-expected orders for the beginning of 2024.
The prevailing concern on Wall Street revolves around the likelihood of prolonged high-interest rates. Federal Reserve officials hinted at maintaining elevated interest rates for an extended period, disappointing traders who had anticipated potential rate cuts this year.
Amid the uncertainty surrounding interest rates, companies are under heightened pressure to deliver robust profit growth. Netflix saw a 9.1% decline despite reporting stronger-than-expected profits for the latest quarter.
In the oil market, U.S. benchmark crude oil dropped by 68 cents to $81.54 per barrel, while Brent crude declined by 72 cents to $86.57 per barrel. Crude prices fluctuated following concerns about escalating tensions in the Middle East.
