Tech Stocks Rebound While Asian Markets Struggle

Global markets show mixed trends as U.S. inflation eases, boosting Wall Street tech stocks while Asia-Pacific indices struggle. Commodities and bond yields are steady.

Global markets showed mixed trends on Thursday as easing U.S. inflation data buoyed investor sentiment, while Asia-Pacific indices remained under pressure. Wall Street rebounded with tech stocks leading the charge, while commodities and bond yields saw minor fluctuations.

Asian Markets Struggle Despite Positive U.S. Data

Despite the softer-than-expected U.S. inflation report, Asian stock markets struggled. Japan’s Nikkei 225 remained nearly flat, slipping 0.03%, while the broader Topix gained 0.18%. Seven & i Holdings saw a 3.6% jump as Canadian convenience store giant Alimentation Couche-Tard pushed forward with a $47 billion acquisition bid for the 7-Eleven operator. However, the deal faces resistance over regulatory concerns.

China’s markets fared worse, with the Shanghai Composite dropping 0.40% and the CSI 300 falling 0.54%. Hong Kong’s Hang Seng Index declined 0.88%, extending losses amid ongoing economic uncertainty. South Korea’s Kospi and Kosdaq reversed earlier gains, ending the session lower. Australia’s S&P/ASX 200 also dropped 0.48%, marking its third straight day of losses.

In contrast, Indian markets saw modest gains as inflation cooled to 3.61% in February. The Nifty 50 and BSE Sensex edged up 0.15% and 0.16%, respectively. Analysts from Nomura expect inflation to remain below 4% into early 2025, driven by subdued demand, higher crop output, and lower manufacturing costs.

Tech Stocks Rebound While Asian Markets Struggle

Tech Stocks Propel Wall Street Recovery

U.S. markets saw a tech-driven rally after inflation data showed the Consumer Price Index (CPI) rising 0.2% month-on-month, aligning with expectations. The annual CPI stood at 2.9%, reinforcing hopes that the Federal Reserve may hold off on further rate hikes.

The Nasdaq surged 1.22% as heavyweight tech stocks rebounded. Nvidia soared 6.4%, AMD gained over 4%, Meta climbed 2%, and Tesla spiked more than 7%. The S&P 500 added 0.49%, while the Dow Jones Industrial Average lagged, slipping 0.2%.

Commodities and Bond Yields Hold Steady

Gold prices inched up 0.10% to $2,948.35 per ounce, while silver dipped 0.48% to $33.50. Brent crude hovered at $70.75 per barrel, down 0.05%, and WTI crude slipped 0.14% to $67.58.

Bond yields remained relatively stable. The U.S. 10-year Treasury yield stood at 4.296%, the UK 10-year yield at 4.7245%, and Germany’s 10-year yield at 2.8765%.

Key Economic Events Ahead

Investors are closely monitoring upcoming U.S. economic data releases, including:

• 12:30 PM GMT – USD Core Producer Price Index (PPI) m/m
• 12:30 PM GMT – USD PPI m/m
• 12:30 PM GMT – USD Unemployment Claims

Market participants expect these reports to provide further insight into inflation trends and potential Federal Reserve policy moves. While the latest CPI data has sparked optimism, analysts remain cautious, emphasizing that the Fed may require more consistent inflationary easing before altering its stance.

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