Investing.com - Asian-Pacific shares exhibited a mixed performance on Monday, following a week of gains in US markets.
By 10:30 am AEST (12:30 am GMT) the S&P/ASX 200 experienced a marginal drop of 0.1%, while South Korea's KOSPI 200 saw a 0.2% increase and Japan's Nikkei 225 observed a 0.3% decrease.
US stocks concluded the previous week with gains, distancing the market further from the sluggish performance witnessed in April. The Dow Jones Industrial Average recorded a 0.3% rise, marking its eighth consecutive trading session win for 2024. The S&P 500 marginally rose by 0.2%, and the NASDAQ Composite remained almost unchanged. So far in May, all three indices have gained at least 3.7%.
The performance in May signifies a turnaround from April when unexpectedly high inflation data disrupted Wall Street's anticipation for interest rate reductions, triggering a bond sell-off and impacting the stock market. Subsequent data indicating a deceleration in hiring and an increase in unemployment claims have assuaged some investors' fears about prolonged inflation surpassing the Federal Reserve's 2% target. This growing confidence in a gradual economic slowdown has contributed to a bond rally this month, leading to a decrease in yields.
Benchmark 10-year Treasury yields increased after the survey, settling at 4.503%. This rise in yields corresponds to a fall in prices. In the stock market, the rally was led by more defensive sectors including utilities, industrials, and materials. Energy firms' shares also increased, even as oil prices remained relatively stable.
Among the so-called "Magnificent Seven" stocks, most experienced a dip on Friday. However, NVIDIA Corporation (NASDAQ:NVDA), Qualcomm Incorporated (NASDAQ:QCOM), and Broadcom Inc (NASDAQ:AVGO) saw an uptick after Taiwan's TSMC, the world's largest contract chip manufacturer, reported considerable sales.
In the pharmaceutical sector, Moderna Inc (NASDAQ:MRNA) fell by 4.4% after the Food and Drug Administration missed its target date for a decision on Moderna's proposed RSV vaccine. In contrast, Novavax's stock soared by 99% after the vaccine maker announced a licensing agreement with French healthcare company Sanofi (EPA:SASY) to jointly commercialize its Covid-19 vaccine.
In the commodities market, Brent crude oil fell by 1.3% to US$82.79 a barrel, while gold rose by 0.6% to US$2,360.50. In local bond markets, Australian 2 Year government bonds yield decreased to 4.02%, and the 10 Year yield also fell to 4.32%. US Treasury notes were up, with the 2 Year yield at 4.87% and the 10 Year yield at 4.50%.