Asian shares mostly gain, with Tokyo closed, as more tests for markets loom

AP Business Writer

BANGKOK (AP) — Asian shares were mostly higher in calm trading on Monday ahead of big reports this week on the state of the U.S. economy.

Oil prices climbed and U.S. futures were higher.

Hong Kong’s Hang Seng edged 0.1% higher, to 17,108.28 and the Shanghai Composite index slipped 0.1% to 2,858.20.

Markets in Tokyo and Bangkok were closed for holidays.

In Seoul, the Kospi jumped 1.2% to 2,618.30, as shares in Samsung Electronics gained 1.1%, tracking advances in Big Tech companies late last week. Taiwan’s Taiex advanced 1.4%, as computer chip giant Taiwan Semiconductor Manufacturing Co. added 0.6% and electronics maker Hon Hai Precision Electronics, also known as Foxconn, surged 4.5%.

Australia’s S&P/ASX 200 rose 0.5% to 7,813.70.

Last week started with a jolt, as markets gyrated under heavy selling triggered by concerns over whether the U.S. economy may be slowing too quickly. Japanese stocks endured their worst percentage loss since 1987’s Black Monday. But it ended in calm after more big U.S. companies joined the pile reporting better profit for the spring than analysts had expected.

“The recent run in stronger-than-expected U.S. economic data has aided to push back against recession concerns, with rate expectations now suggesting that the U.S. Federal Reserve (Fed) may retain more flexibility in its policy easing process as compared to one that is being forced by higher economic risks,” Yeap Jun Rong of IG said in a commentary.

On Friday, the S&P 500 rose 0.5% to close at 5,344.16, coming off its best day since 2022 and trimming its loss after the week’s wild ride to less than 0.1%.

The Dow Jones Industrial Average rose 0.1% to 39,497.54, and the Nasdaq composite added 0.5% to end at 16,745.30.

Aside from reports on inflation, this week will also bring updates on retail sales and unemployment.

The most recent jobs report raised hopes for the economy after the prior week’s frightened investors. Households at the lower end of the income spectrum have been struggling for a while to keep up with still-rising prices, but economists expect the report to show a return to growth after a stall in retail spending during June.

A worst-case scenario would be if Tuesday’s and Wednesday’s inflation reports show higher-than-expected rises in prices at the wholesale and consumer levels, while the week’s other reports show a sharp weakening of the economy.

The frenzy around AI allowed a handful of Big Tech stocks to drive the S&P 500 to dozens of all-time highs this year, even as high rates weighed on other areas of the market. But the group of stocks known as the “Magnificent Seven” lost momentum last month amid criticism investors got carried away and took their prices too high.

All of the Magnificent Seven rose Friday except for Nvidia, which slipped 0.2%.

Worries remain about the strength of the U.S. economy. They dragged Treasury yields lower Friday as investors looked for safer places for their money and expectations built for deeper cuts to rates coming from the Federal Reserve. The yield on the 10-year Treasury fell to 3.94% from 3.99% late Thursday.

“Market pricing suggests that traders remain nervous about the steady-as-she-goes assessment of policy rates, and the volatility of last week perhaps serves as a warning that we could be only one or two bad prints away from further turmoil,” Benjamin Picton, a senior market strategist at Rabobank, said in a report.

In other dealings early Monday, U.S. benchmark crude oil rebounded, gaining 58 cents to $77.44 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 44 cents to $80.10 per barrel.

The U.S. dollar rose to 147.25 Japanese yen from 146.63 yen. The euro climbed to $1.0923 from $1.0919.