Following a recent selloff driven by inflation concerns, Asia-Pacific markets are gearing up for a potential rebound. Investors are eagerly awaiting the release of a fresh batch of economic data from the region, including China’s trade numbers for March. Analysts predict a 2.3% year-on-year decline in exports, based on a Reuters poll. This comes on the heels of a lackluster inflation report from China earlier in the week.
Singapore is also set to announce its first-quarter gross domestic product (GDP) numbers. The country’s economic performance could receive a boost from Taylor Swift’s Eras Tour in March, a phenomenon that has been playfully termed “Swiftonomics.” In addition to GDP data, Singapore’s central bank is scheduled to unveil its monetary policy decision on Friday. Unlike other nations, Singapore employs exchange rate settings as a key component of its monetary policy, rather than relying on a traditional benchmark interest rate.
South Korea’s Unemployment Rate Rises, Eyes on Bank of Korea’s Rate Decision
Meanwhile, South Korea reported a rise in its March unemployment rate to 2.8%. Investors are closely monitoring the upcoming rate decision by the Bank of Korea, which could have implications for the country’s economic outlook.
In Australia, futures for the S&P/ASX 200 index point to a stronger open, hinting at a potential rebound from the previous session. Japan’s Nikkei 225 is also poised for a recovery, with futures indicating positive momentum in both Chicago and Osaka. However, futures for Hong Kong’s Hang Seng index suggest a weaker start, diverging from the positive performance of U.S. tech shares.
Tech Sector Boosts U.S. Markets
Overnight in the U.S., tech stocks propelled the S&P 500 and Nasdaq Composite into positive territory. Both indexes saw gains, with the S&P 500 rising by 0.74% and the Nasdaq climbing 1.68%. In contrast, the Dow Jones Industrial Average experienced a marginal decline of 0.01%.
Key tech companies such as Nvidia, Amazon, Alphabet, and Apple made notable moves during the trading session. Nvidia surged by 4.1%, while Amazon reached an all-time high with a 1.7% increase. Alphabet also registered a gain of over 2% in the market. Apple, in particular, stood out with a 4.3% jump following reports of a strategic shift towards artificial intelligence-focused chips in its Mac product line, marking the company’s strongest performance since May 2023.
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