Asian stocks were poised to track Wall Street higher on Monday as a rally in technology shares and a slump in oil prices drove US benchmarks to their best day in seven months.
Equity-index futures for South Korea, Japan, and Taiwan pointed to gains of at least 2 per cent, while futures for Australia indicated more modest advances. The S&P 500 rose 2.3 per cent on Wall Street, marking its largest increase since April 8, while a near 7 per cent surge in chipmaker shares pushed the Nasdaq 100 up 3.4 per cent.
The tech rebound occurred despite a 4.3 per cent slump in Nvidia Corp. shares following an internal probe into Chief Executive Officer Jensen Huang. Huang acknowledged having an affair with a woman identified in reports as a suspected Chinese spy, according to Yahoo Finance reporting. China labeled the spying claims baseless,
while Yorkville Ives analyst Dan Ives stated that the crisis would create an overhang on the stock for a myriad of reasons
and trigger congressional inquiries.
Nvidia stands as a global leader in producing chips used to train and run AI models and ranks among the world’s most valuable companies, having become the first firm to reach a market capitalization of $5 trillion last year.
Adam Sarhan of 50 Park Investments remarked on the market dynamic by stating, You had a sell-off and now things are cheaper,
while explaining that pullbacks without fundamental deterioration offer solid entry points for value investors.
Meanwhile, international crude benchmarks dropped sharply as President Donald Trump adopted a conciliatory tone regarding Iran. Brent crude slumped nearly 6 per cent to settle below $93 a barrel, with Trump declaring it highly unlikely
that he would order extensive strikes on the Islamic Republic, as detailed by Yahoo.
This steady decline in oil prices amid speculation about efforts to resolve the Middle East conflict has helped alleviate inflation anxieties across major economies.
Chris Larkin of E*Trade from Morgan Stanley observed that although the prior week’s turbulence did not permanently eliminate volatility, the market action reflected investors repositioning within the artificial intelligence trade rather than completely abandoning the sector. Ulrike Hoffmann-Burchardi of UBS Chief Investment Office cautioned that market rebounds do not entirely remove risks stemming from concentrated positioning and elevated expectations.
| Market / Index | Performance | Closing Level |
|---|---|---|
| New York – Dow | UP 2.2 percent | 52,389.75 |
| New York – S&P 500 | UP 2.4 percent | 7,549.94 |
| New York – Nasdaq Composite | UP 2.7 percent | 25,253.14 |
| London – FTSE 100 | UP 1.0 percent | 10,782.87 |
| Paris – CAC 40 | UP 1.2 percent | 8,233.30 |
| Frankfurt – DAX | UP 1.7 percent | 26,267.19 |
| Tokyo – Nikkei 225 | UP 2.3 percent | 58,775.50 |
| Seoul – Kospi | DOWN 0.8 percent | 5,018.85 |
| Hong Kong – Hang Seng Index | DOWN 0.1 percent | 24,448.95 |
| Shanghai – Composite | UP 0.3 percent | 3,660.79 |
Market strategists noted that economic fundamentals remain sound despite recent sector turbulence. Brock Weimer at Edward Jones noted, We continue to see economic conditions as supportive of corporate fundamentals,
adding a recommendation that investors maintain an overweight allocation to equities relative to fixed income,
as reported by Yahoo.
Earlier coverage: Dow Futures Rally 500 Points as Oil Prices Drop; Traders Brace for More Data and Earnings: Live Updates
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