Asian stocks are mixed as most regional markets are closed for public holidays.
BANGKOK — Asian stocks were mixed on Monday, with most regional markets closed for a public holiday, but U.S. futures edged lower after the S&P 500 ended last week above 5,000.
Australia's S&P/ASX 200 fell 0.3% to 7,621.10, while India's Sensex rose 0.1% to 71,647.74. Thailand's SET rose 0.1%, while Jakarta's benchmark rose 0.6% ahead of elections on Wednesday.
Mainland Chinese markets were closed this week for the Lunar New Year, so there was a lack of market-moving news. The Tokyo market was also closed on Monday due to a national holiday.
This week there will be important updates from the US on consumer inflation expectations. Japan is scheduled to announce its GDP growth rate for the final quarter of 2023 on Thursday.
U.S. price statistics may not have a big impact on monetary policy, “but the good news is that U.S. inflation has probably declined at the beginning of the year, and the Federal Reserve is considering interest rate cuts in the coming months.” There are growing expectations that this is possible.” Stephen Innes of SPI Asset Management said in a commentary:
On Friday, the S&P 500 rose 0.6% to close above 5,000 for the first time at 5,026.61. This marks the 10th time in less than a month for the index, completing its 14th winning week out of the past 15 and continuing a wild rally that began around Halloween.
The Nasdaq Composite Index rose 1.2% and came within 0.4% of its all-time high set in 2021, closing at 15,990.66.
The Dow Jones Industrial Average lagged, falling 0.1% to $38,749 a day after setting a record.
Wall Street's gains are supported by hopes that cooling inflation will lead the Federal Reserve to ease pressure by cutting interest rates.
Big tech stocks moved much of the market on Friday, as they have for more than a year, in part due to mania surrounding artificial intelligence technology. Nvidia, Microsoft and Amazon each rose at least 1.6%, making them the three biggest forces pushing the S&P 500 higher.
Cloudflare became the latest company to soar, reporting strong profits in its latest quarter that beat analysts' expectations. The cloud services company soared 19.5% after announcing it signed both its largest new customer and largest contract renewal ever, despite the overall economic environment “remaining difficult to predict.”
Profits for major companies in the S&P 500 have generally exceeded expectations this fiscal year, with nearly two-thirds of the earnings season complete. That sparked optimism on Wall Street, but contrarians say it may have gone too far and pushed stocks to extremely expensive levels.
Traders are flowing into some riskier investments at a sufficient pace that the contrarian strategy maintained by Bank of America, which currently leans more towards sell than buy, remains convincing. Not at a certain level. This indicator tracks the level of fear and greed in the market, and suggests buying in October when fear reaches convincing highs.
In other trading Monday, benchmark U.S. crude oil fell 38 cents to $76.46 a barrel in electronic trading on the New York Mercantile Exchange. It rose 62 cents on Friday.
Brent crude, the international standard crude, fell 37 cents to $81.82 per barrel.
The dollar fell to 149.24 yen from 149.28 yen. The euro rose to $1.0792 from $1.0784.