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Global market update: APAC shares open higher as tech drives US indices

EditorOliver Gray
Published 27/05/2024, 10:58 am
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Investing.com - On Monday, shares in the Asia-Pacific region, including the S&P/ASX 200, KOSPI 200, and Nikkei 225, experienced an uplift, following a strong performance by tech stocks that drove US indices upwards on Friday.

The S&P 500 and the tech-centric NASDAQ Composite rose for a fifth consecutive week due to a boost from technology stocks, while the Dow Jones Industrial Average ended its weekly winning streak that had been ongoing since mid-April. Despite a rocky week, major indices are on track to finish May with their best monthly performances of 2024.

In the corporate world, several Dow components had challenging weeks. Stocks of Boeing Co (NYSE:BA), Salesforce Inc (NYSE:CRM), Home Depot Inc (NYSE:HD), 3M Company (NYSE:MMM), and McDonald’s Corporation (NYSE:MCD) each fell more than 5%. However, many investors remain optimistic about the future, especially after a robust economy defied expectations that the Federal Reserve's fight against inflation would plunge the US into a recession.

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In the commodity markets, Brent crude oil saw a 0.9% increase to $82.12 a barrel, while gold rose 0.2% to $2,333.83.

In local bond markets, Australian 2 Year government bond yields rose to 4.04%, and the 10 Year yield also increased to 4.31%. US Treasury notes showed mixed results, with the 2 Year yield rising to 4.95% and the 10 Year yield dropping to 4.46%.

In China, shares declined due to a drop in property and software technology stocks. Investors are seeking new catalysts after Beijing announced significant property policy changes last week. Major stocks like China Vanke, Poly Developments & Holdings, and Beijing Kingsoft Office Software saw a dip, while shares of Midea Group and Jinko Solar went up.

Hong Kong's Hang Seng Index slipped 1.4%, while Japan's Nikkei Stock Average fell 1.2%. India's shares remained flat after hitting a record high for the second consecutive session. Investors are watching for further hints on potential interest rate cuts by the Federal Reserve.

In the UK, stocks slipped as the FTSE 100 Index declined by 0.2%. Shares of AJ Bell PLC, National Grid (LON:NG) PLC, and Deliveroo PLC fell, while YouGov PLC, Ocado (LON:OCDO) Group PLC, and John Wood Group PLC surged. In Europe, shares closed mixed, with the STOXX Europe 600 Index down 0.2%, Germany's DAX closing flat and France's CAC 40 easing 0.1%.

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