Asian Stocks Set to Rise Despite Softed US Lead

By Rafael Matsunaga (Flickr) via Wikimedia Commons

Early on Thursday, futures pointed to gains for Asian markets despite the drops that were observed overnight on Wall Street.

On Wednesday, the stocks of U.S. technology with Netflix, Apple, and Amazon losing 5 percent, 1.1 percent, and 4.4 percent, respectively. The drops saw the tech-heavy Nasdaq composite close down by 0.85 percent at 6,949.23.

The shares of technology companies plunged earlier in the week, bringing an end to a short rally in markets that are linked to a potential easing in trade tensions.

The Dow Jones industrial average edged down by 9.29 points or 0.04 percent, to close at 23,848.42. The said index had traded in an extensive range through the day, even rising as much as 234.76 points at one point during the day. The S&P 500 dropped by 0.29 percent to close at 2,605.

Issues regarding trade also continued to simmer as global markets waited for the developments in the trade ties of the United States and China after Donald Trump, the President of the United States of America, signed an executive memorandum earlier in March that could impose tariffs on up to $60 billion on goods from China.

Meanwhile, the government debt yields of the United States declined as investors turned to traditionally safer assets. That saw the fall of the yield on the 10-year Treasury note to 2.783 percent after dropping to its lowest levels in seven weeks earlier in the session.

In a morning note, ANZ Research analysts stated: “Uncertainty about trade discussions and end-quarter buying supported fixed income across the board.”

Over in Asia, equities seem to be set to not be affected by the weaker lead from Wall Stree as futures are pointing to a higher open for Japan. The futures of Nikkei that are traded in Chicago were up by 1.4 percent at 21,325 as compared to the previous close of the benchmark.

Down Under, the ASX 200 crawled higher by 0.07 percent during the early morning trading as the gains in utilities and the heavily weighted financials sector offset the weakness in the materials subindex.