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Stock market today: Asian shares start June with big gains following Wall St rally

The Asian stock markets kicked off the month of June with significant gains on Monday, following the positive trend set by Wall Street in the previous week. The surge was led by Hong Kong's Hang Seng Index, which saw a robust increase of 2.7%. This uptick can be attributed to various factors, including optimism over the ongoing trade negotiations between China and the United States, as well as the strong performance of the US markets in May.

The S&P 500 index in the United States had closed its sixth winning month in the last seven on Friday, with a rise of 0.8%. This marked an impressive run for the index, which has been buoyed by strong corporate earnings reports and optimism over the economic recovery from the pandemic. The Dow Jones Industrial Average also saw a substantial increase of nearly 575 points or 1.5%, while the Nasdaq Composite, which is heavily weighted towards technology stocks, slipped by less than 0.1%.

The technology sector, however, did not perform as well as other sectors due to sagging prices for some big tech stocks such as Apple and Microsoft, which weighed down the Nasdaq. Despite this, the overall trend in the US markets remained positive, with investors showing confidence in the economic recovery and the continued support of monetary and fiscal policies.

In the bond market, Treasury yields eased slightly as investors digested data showing that the Federal Reserve's preferred measure for inflation, the Personal Consumption Expenditures (PCE) price index, held steady last month. This data kept alive hopes for potential interest rate cuts from the Federal Reserve later this year, as inflation remains below the central bank's target of 2%. The easing of yields also made bonds an attractive investment option for some investors, contributing to the overall positive sentiment in the markets.

In summary, the Asian stock markets began June on a strong note, building on the positive momentum from the US markets in May. The trend was driven by optimism over trade negotiations and strong corporate earnings reports, as well as the continued support of monetary and fiscal policies. The bond market also showed signs of optimism, with yields easing slightly in response to inflation data and potential interest rate cuts from the Federal Reserve.


Published 125 days ago

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