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Global market update: APAC markets lift on tech gains, China slumps

Published 09/01/2024, 11:46 am
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Investing.com - Asian-Pacific stock markets experienced an uptick on Tuesday, riding on the wave of a major rally on Wall Street, primarily driven by technology shares.

Key indices including Australia's S&P/ASX 200, South Korea's KOSPI 200, and Japan's Nikkei 225 each opened with a 1.2%, 0.9% and 1.8% gain, respectively.

In the commodities arena, Brent crude oil fell over 3% to $US75.77 per barrel, gold slipped 0.95% to $US2,026, and iron ore decreased over 1% to $US141.45 per tonne.

In local bond markets, yields on Australian 2-year government bonds rose to 3.926%, while the 10-year yield remained mostly unchanged at 4.171%. In contrast, US Treasury notes decreased, with the yield on 2-year notes falling to 4.362% and the 10-year yield dropping to 4.012%.

The Australian dollar remained steady at 0.6726 US cents.

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In the US, stocks witnessed a significant surge on Monday, led by a more than 2% gain in the Nasdaq Composite, thanks to a rally in technology stocks. The S&P 500 rose over 1%, recovering from a 1.5% loss last week and ending a nine-week winning streak. However, the Dow saw more modest gains, held back by Boeing (NYSE:BA), which dragged the blue-chip index into negative territory.

Chinese shares hit new lows, with the CSI 300 index—which tracks blue-chip stocks listed in Shanghai and Shenzhen—falling 1.3% to its lowest close since early 2019. The Shanghai Composite also fell 1.4% to its lowest close since April 2022. In Hong Kong, the Hang Seng Index, which includes many mainland Chinese companies, slid 1.9% to close at its lowest point since December 11th.

European shares bounced back after a disappointing start to the year. The technology sector led the recovery with a 1.2% gain, breaking a six-day losing streak, while the retail index gained 1.3%, marking its first increase in seven sessions. Conversely, energy stocks fell by 2.7%.

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