Asian stocks dip as tech rally cools; Japan scales new peaks
Investing.com-- Most Asian stocks retreated on Monday as persistent concerns over higher-for-longer interest rates sparked some profit-taking in technology stocks, while Japanese markets scaled new record peaks ahead of key inflation data.
Tech stocks were hit with a large degree of profit-taking after a strong rally over the past week, as optimism over artificial intelligence now appeared to be waning. A muted session on Wall Street on Friday also provided middling cues, with U.S. stock futures moving little on Monday after reaching record highs.
Anticipation of a string of key economic readings this week, particularly more cues on U.S. inflation and interest rates, also kept risk appetite largely muted.
China’s Shanghai Shenzhen CSI 300 and SSEC indexes fell 0.6% and 0.5%, respectively, on Monday, retreating from two and three-month highs as a recent rebound rally now appeared to be running out of steam.
Hong Kong’s Hang Seng index fell 0.6%, also retreating from a near three-month high.
Beijing had rolled out a string of monetary stimulus measures, while also tightening its regulatory hold on equity markets to help shore up investor confidence. The move had yielded some results, with China’s benchmark indexes rallying sharply from multi-year lows through most of February.
But Chinese markets face a new test this week, from key purchasing managers index data for February, due on Friday. The reading is expected to offer more cues on an economic recovery in Asia’s largest economy.
Broader Asian stocks retreated as a tech rally cooled. South Korea’s KOSPI shed 0.5%, while Australia’s ASX 200 index traded sideways.
Futures for India’s Nifty 50 index pointed to a mildly weak open, although the index remained in sight of
Read more on investing.com
