Asian equities are expected to rise on Tuesday, following a rebound in Wall Street caused by’surges in big tech’ Rising Treasury yields and anticipated rate hikes in Asia could dampen investor confidence in risk-taking as investors anticipate stern speech from Federal Reserve Chairman Jerome Powell later in the week.
Japanese shares experienced a 1% increase in futures, while benchmarks in Australia and Hong Kong experienced smaller gains. Additionally, an index of U.S.-listed Chinese stocks in the market saw reversal.
Monday saw the S&P 500 end a four-day decline, while the Nasdaq 100 increased by approximately 1.5%, with Tesla Inc. experiencing its highest increase since March. Meanwhile, Nvidia Corp., which was instrumental in driving the artificial-intelligence growth that has spurred this year’s stock market surge, jumped more than 8%.
At the same time, Brent crude and West Texas Intermediate were both trading below $85 per barrel and the 10-year U.S. bond yield was 4.34%, while Bitcoin was below 27,000.
At 5:16 a.m., the GIFT Nifty, an early gauge of the NAF Index’s performance in India, fell by 19 points or 0.10% to 19,380.
The metals and I.T. sectors led to an increase in India’s benchmark stock indices, while the shares of Reliance Industries Ltd. were the main drag after the listing of Jio Financial Services Ltd.” RIL’S listed companies erased up to Rs 36,480.61 crore in market capitalisation, with the fintech arm of Ril dropping as much as 5% after its listing on the bourses.
The headline indices ended up higher on Monday after two days of losses, with Nifty regaining the 19,400 mark and Sensex above the 65,200 level.
For the third consecutive session, Indian equities were net sellers from overseas. Foreign portfolio investors released stocks worth Rs 1,901.1 crore on Monday, while domestic institutional investors remained net buyers and mopped up a share of X-rays worth around Rs 626.25 crore.
The local currency ended the day at Rs 83.11 on Monday, against the U.S. dollar.