Asian shares showed a mixed performance in calm trading on Monday as investors awaited significant reports on the state of the U.S. economy scheduled for later in the week. Hong Kong's Hang Seng index edged 0.2% higher, while the Shanghai Composite index was up 0.1%. Markets in Tokyo and Bangkok remained closed due to holidays.
In Seoul, the Kospi surged 1.1%, led by gains in Samsung Electronics, following the positive momentum from Big Tech companies late last week. Taiwan's Taiex also rose 1.1%, with notable increases in electronics maker Hon Hai Precision Electronics.
Australia's S&P/ASX 200 climbed 0.5% to 7,815.60, reflecting the overall positive sentiment in the region.
Last week saw initial market turbulence due to concerns over the pace of the U.S. economic slowdown, but ended on a calmer note as more U.S. companies reported better-than-expected profits for the spring season.
The upcoming week is anticipated to bring crucial updates on inflation, retail sales, and unemployment, with the latest jobs report already showing signs of hope for the economy. Analysts are closely watching for any surprises in the inflation reports that could impact market sentiment.
The recent focus on Big Tech stocks, known as the 'Magnificent Seven,' has been a key driver of the S&P 500's record highs this year. However, concerns over inflated stock prices have led to a loss of momentum in this group, with most stocks seeing gains on Friday except for Nvidia.
Despite the positive market movements, worries persist about the strength of the U.S. economy, reflected in lower Treasury yields as investors seek safer assets. The U.S. dollar strengthened against the Japanese yen and the euro in early trading on Monday.
In the commodities market, U.S. benchmark crude oil prices dipped slightly, while Brent crude also saw a modest decline.
Overall, market participants are closely monitoring the upcoming economic reports for insights into the trajectory of the global economy and potential market volatility in the coming days.
