Asian stocks and US equity-index futures saw their initial gains reversed on Monday, primarily due to a loss of momentum in technology stocks. MSCI’s Asia Pacific Index rose only 0.1% after an earlier climb of 0.8%, and South Korea’s Kospi Index fell 0.3%, recovering from a 3% decline. US equity-index futures also trimmed their advance, reflecting a broader caution in the markets.
The spotlight was on chipmakers, with Nvidia Inc.’s server assembly partner Hon Hai Precision Industry Co. reporting stronger-than-expected sales, which included a 40% jump in quarterly sales. However, SK Hynix Inc. shares dropped over 1%. Separately, Samsung Electronics Co. plans to raise average third-quarter DRAM prices by about 20%.
The broader market saw some volatility. The Bloomberg Dollar Spot Index rose 0.1%, with the euro little changed at $1.1429 and the Japanese yen falling 0.3% to 161.81 per dollar. In commodities, West Texas Intermediate crude rose 0.2% to $68.85 a barrel, while Brent traded around $72.10 a barrel. Spot gold rose 0.2% to $4,186.23 an ounce. Yields on the 10-year Treasury slipped two basis points to 4.47%.
Corporate news also made headlines, with EasyJet Plc agreeing in principle to a takeover offer of more than £5 billion from Castlelake LP. A federal judge ordered the Pentagon to give Alibaba Group Holding Ltd. a reprieve concerning a law that affected its lobbyists. Meanwhile, Bitcoin rose 1.3% to $63,508.12 and Ether rose 0.5% to $1,784.9.
