Asian markets see gains following tech rally on Wall Street last week

Asian shares were trading higher on Monday, fueled by optimism over the rally on Wall Street at the end of the previous week. Sydney’s S&P/ASX 200 surged 0.6%, South Korea’s Kospi jumped nearly 1.0%, Hong Kong’s Hang Seng rose 1.2%, and the Shanghai Composite added 0.6%. However, trading was closed in Tokyo for a Japanese national holiday, Showa Day, marking the beginning of the Golden Week holidays.

Stephen Innes, managing partner at SPI Asset Management, noted that the market mood was positive following last week’s tech-driven rally on Wall Street. Strong earnings reports have boosted market sentiments, but concerns linger over the declining Japanese yen. The yen hit a new 34-year low after the Bank of Japan’s decision to keep interest rates unchanged, raising worries about the impact on the economy in the long run.

On Wall Street, the S&P 500 closed out its first winning week in the last four, rallying 1%. The Dow Jones Industrial Average rose 0.4%, and the Nasdaq composite jumped 2%. Analysts expect the Federal Reserve to keep rates on hold amid high inflation levels. Treasury yields eased in the bond market following the inflation report, with the 10-year Treasury yield falling to 4.66%.

In energy trading, benchmark U.S. crude fell to $83.05 a barrel, while Brent crude lost ground to $88.59 a barrel. Investors are closely watching the Federal Reserve policy meeting scheduled for later in the week for further guidance on interest rates and inflation targets.