publive-imageAsian Shares Surge in Anticipation of Tech Sector Earnings Reports

Asian shares extended gains today, taking cues from Wall Street as they focus on U.S. earnings. Industrial heavyweights came up during the week, as a still-strong dollar put further pressure on the Japanese yen at a 34-year low.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, helped by a 1 percent rise in Taiwanese shares and a 0.8 percent rise in Hong Kong's Hang Seng Index.

The Asian index rose 1 percent on the first day, recovering some of last week’s 3.7 percent loss as it eased fears of a sharp escalation in the Middle East conflict. Japan’s Nikkei rose 0.1 percent.

Tech participation in the region roared and Taiwan Semiconductor Manufacturing Co Ltd advanced 1.5 percent, while the MSCI Asia-Pacific East Japan IT Index rose 0.8 percent. But Chinese shares fell, with blue-chips losing 0.6 percent.

On Wall Street, large industrial stocks performed well this week ahead of their quarterly results, sending the Nasdaq up 1.1 percent. AI darling Nvidia rose 4.4 percent, Amazon.com jumped 1.5 percent and Alphabet jumped 1.4 percent, although Tesla fell 3.4 percent after slashing prices in its key markets.

Tech giants like Tesla, Meta Platforms, Alphabet, and Microsoft are announcing their earnings this week. UBS yesterday lowered its ratings on the mega-caps, warning that the growing returns of its so-called Big Six technology stocks could “collapse” over the next three years.

In addition to higher corporate equities, markets are also waiting for the release of the US dollar gross domestic product and personal spending data for March when the Fed's preferred measure of inflation will be released later this week, to further determine the direction of the monetary policy. Traders will see the first Fed rate cut coming in September, when.

The sharp change in interest rate expectations caused the U.S. to recover. The fund's two-year and 10-year yields both rose about 100 points from their recent lows. Despite the news and reports today, there has been little change, with the two-year yield holding at 4.9713 percent and the 10-year yield at 4.6167 percent.

Differences in U.S. prices. and Europe were weighed down by the announcement of the euro against the U.S. dollar. $1.0659 and near a five-month low of the US dollar. $1.0601 last week. pervaded with the 34-year-old hitting a new low. It hit a new low of 154.85 overnight, rising 0.1 percent to 154.71 per dollar.

Japanese Finance Minister Shunichi Suzuki said the risk of meddling was high as he said a trilateral meeting with his U.S. counterparts would be held on Wednesday. with South Korea last week laid the groundwork for Tokyo to act normally in foreign exchange markets.

Oil prices suffered another big loss overnight as investors weighed in on the situation in the Middle East. Brent futures rose 0.2 percent to US. $87.16 per barrel, while the US. crude oil sales rose 0.2 percent to the US dollar. $82.06 per barrel. But gold fell 2.7 percent overnight to the US dollar. $2,295.9 per ounce, down 1 percent.

Conclusion: While investors wait for the earnings release, market momentum could be affected by these important announcements. The tech sector’s performance in the coming days will serve as a barometer of market sentiment and could set the tone for broader market momentum in the coming weeks.