Asia-Pacific markets mirrored gains seen on Wall Street on Monday, buoyed by optimism sparked by a softer-than-expected U.S. jobs report. Investors eagerly awaited key events including the Reserve Bank of Australia’s rate decision and China’s April trade data later in the week.
In Australia, recent inflation data pointed to an acceleration in price growth, prompting close scrutiny of the RBA’s upcoming meeting. Despite the country’s economy experiencing a significant slowdown and softening labor market, analysts from ING forecasted no change to the RBA’s rate.
Elsewhere, composite purchasing managers’ index readings were due for release for Hong Kong, while service PMI data for mainland China and India were also anticipated.
Japan and South Korea’s markets remained closed for a public holiday, while in the U.S., stocks surged on Friday following the release of a weaker-than-expected April jobs report. The nonfarm payrolls report showed fewer jobs added than anticipated, coupled with lower-than-expected wage figures, signaling a positive outlook for inflation.
Meanwhile, Indonesia’s first-quarter GDP growth exceeded expectations, reflecting its fastest expansion in three quarters. Foxconn, a major iPhone manufacturer, reported a significant increase in April revenue, driving a spike in its shares.
In currency markets, the Japanese yen faced resistance against the U.S. dollar at the 150 level, despite suspected intervention by Japanese authorities. Additionally, a private survey showed a slight slowdown in China’s services activity in April, while business activity in Hong Kong’s private sector expanded at a slower pace during the same period.
Looking ahead, investors weighed the impact of the AI boom on tech stocks, with names like Samsung and SK Hynix dominating the memory chip market. CNBC Pro analyzed which stock was better positioned to capitalize on the AI trend.
Furthermore, Goldman Sachs refreshed its list of top global stock picks, aiming to provide investors with a curated selection of buy-rated stocks across Europe and Asia-Pacific.
