Asian Stocks Market Update: Japan's Nikkei Hits Record High Above 40,000 Ahead of China's Key Meeting
Asian Markets Rally as Japan's Nikkei Breaks 40,000 Mark; Investors Anticipate China's Political Summit Impact
Today, most Asian stocks saw gains with Japan's Nikkei reaching a milestone, surpassing 40,000 for the first time. In contrast, U.S. futures dipped, and oil prices remained steady.
The Nikkei 225 index in Japan climbed to 40,314.64, though it retraced slightly, closing at 40,109.23. This rise follows a positive week on Wall Street, boosting U.S. stocks and propelling Japan's market forward.
Japan's market surge is fueled by optimism about AI technology demand and supported by the Bank of Japan's monetary policies. However, Hong Kong's Hang Seng index fell by 0.5%, while the Shanghai Composite index edged up by 0.3%.
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Investor focus shifts to China's National People's Congress opening on Tuesday, expecting updates on policies to aid the slowing economy and stabilize financial markets.
Elsewhere, Seoul's Kospi index rose by 1.2%, but Australia's S&P/ASX 200 and Bangkok's SET remained relatively unchanged.
In the U.S., the S&P 500 and Nasdaq set record highs, driven by robust performances in technology stocks like Dell Technologies, benefiting from heightened demand for AI-optimized servers. However, New York Community Bancorp faced challenges, with a 25.9% decline, reflecting concerns in the banking sector over real estate loan vulnerabilities.
Traders anticipate potential interest rate cuts by the Federal Reserve to alleviate pressure on banks and the economy. Yet, stronger-than-expected economic reports delay rate cut expectations, with June now seen as a likely starting point.
In bond markets, the 10-year Treasury yield eased to 4.21%. Oil prices remained stable, with U.S. crude at $79.95 per barrel and Brent crude at $83.57 per barrel. The U.S. dollar strengthened against the yen and euro.
