TOKYO (AP) โ Asian stocks mostly rose on Monday as investors awaited earnings reports from major global companies and a consumer price report that will be an indicator of U.S. inflation.
Japan's benchmark Nikkei 225 index rose 1.3% in morning trading to 39,505.33. Sydney's S&P/ASX 200 gained 0.3% to 7,798.10. South Korea's Kospi rose 0.3% to 2,723.54. Hong Kong's Hang Seng added 0.8% to 16,856.06, while the Shanghai Composite was little changed, rising less than 0.1% to 3,071.13.
"As risk sentiments appear to recover from earlier jitters, gains may still be somewhat limited, however, as the run-up to the key US consumer price index this week could leave some reservations," he said. Yeap Jun Rong, market analyst at YO G.
The US government will release its March report on consumer prices later this week.
Wall Street ended last week with a rally after a surprisingly strong U.S. jobs report. The S&P 500 rose 1.1%, offsetting most of the previous day's loss and approaching its all-time high set last week. The benchmark still posted its first weekly loss in three weeks.
A currency trader works near the screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the exchange rate between the US dollar and the South Korean won, top center, foreign exchange trading room at the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 8, 2024. (AP Photo/Ahn Young-joon)
Photo: ASSOCIATED PRESS/Ahn Young-joon
The Dow Jones Industrial Average rose 0.8% and the Nasdaq composite gained 1.2%. Technology companies accounted for a large part of the rally.
American employers added a surprisingly strong 303,000 workers to its payrolls in March, the government reported Friday. The strong labor market has helped boost consumer spending and business profit growth, which equates to strong economic growth overall.
Treasury yields rose on Friday following the jobs report. The 10-year Treasury yield rose to 4.40% from 4.31% just before the report was released. The two-year yield, which moves the most based on the Federal Reserve's expectations, rose to 4.75% from 4.65% just before the report.
The Federal Reserve's benchmark interest rate remains at its highest level in two decades as a result of historic rate increases aimed at controlling inflation.
Strong employment and consumer spending have raised concerns that inflation is below 3% and it will not be easy to approach the Federal Reserve's target rate of 2%.
In total, the S&P 500 rose 57.13 points to 5,204.34 on Friday. The Dow added 307.06 points to 38,904.04 and the Nasdaq gained 199.44 points to 16,248.52.
Analysts also say energy prices have been rising lately, a sore spot for economies like Japan, which imports almost all of its oil, although it reversed course early Monday.
Adding to the upward pressures are signs of economic recovery in several regions, which will increase energy consumption. Supply concerns and political tensions also tend to drive up prices.
Benchmark U.S. crude fell $1.27 to $85.64 a barrel. It had risen 0.4% on Friday. Brent crude, the international standard, fell $1.41 to $89.76 a barrel.
In currency trading, the US dollar rose to 151.70 Japanese yen from 151.61 yen. The euro was at $1.0842, little changed from $1.0841.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
