Asian stocks were a mixed bag on Monday, with Japanese shares rebounding from prior losses despite a hawkish Bank of Japan, while Indian technology stocks slid on U.S. President Donald Trump’s crackdown against a major work visa category.
Chinese stocks lagged, while profit-taking in major internet stocks and losses in BYD weighed on Hong Kong shares.
Regional markets took some positive cues from record-high closes on Wall Street last week, as investors cheered an interest rate cut by the Federal Reserve. But this rally was seen cooling on Monday, with S&P 500 Futures down 0.1% in Asian trade.
Focus this week is on a host of key economic indicators and Fed speakers, with Chair Jerome Powell set to speak on Tuesday.
India’s Nifty 50 flat, tech slides on Trump’s H-1B order
India’s Nifty 50 index opened mildly negative on Monday, pressured chiefly by losses in major tech and outsourcing stocks.
IT majors Tech Mahindra Ltd (NSE:TEML), Tata Consultancy Services Ltd. (NSE:TCS), Infosys Ltd (NSE:INFY), and Wipro Ltd (NSE:WIPR), were the worst performers on the Nifty, losing between 2% and 4%.
The sector was rattled by Trump on Friday imposing a $100,000 annual fee on companies for issuing new H-1B worker visas.
The visa has long served as a means for Indian tech companies to rotate their skilled talent into U.S. projects. The sector is also highly dependent on the U.S. for revenue, earning nearly 60% from overseas projects.
Chipmaking and cloud stocks also benefited from optimism over sustained artificial intelligence demand, while positive earnings from delivery firm FedEx Corporation (NYSE:FDX), which usually act as a bellwether for the U.S. economy, also spurred gains.
Fed speakers, PMI data, and inflation on tap this week
A host of Fed officials are set to speak in the coming days, most notably Chair Jerome Powell on Tuesday.
Markets will be watching for any more cues from the Fed on interest rates, with the central bank having signaled a largely data-driven approach to future easing.
To that end, a host of key U.S. economic readings are also due this week. Purchasing managers index data for September is expected to provide more cues on U.S. business activity.
A final reading on second-quarter gross domestic product growth is also due this week.
PCE price index data– the Fed’s preferred inflation gauge– is due on Friday and is expected to provide more definitive cues on the central bank’s plans to cut interest rates.
Core PCE inflation is expected to remain largely above the Fed’s 2% annual target, while focus will be on any signs of higher inflation from increased trade tariffs.
Source :
https://www.investing.com/news/stock-market-news/asia-stocks-japan-back-near-record-highs-after-boj-skorea-buoyed-by-chips-4247816
