Asian Markets Mostly Higher After U.S. Stocks Gain on Tech Rebound – October 26, 2021

Investors in Asia are closely watching U.S. stock movements today after a mixed trading session on Wall Street. Technology stocks, which have recently experienced sharp declines, saw some gains, leading to optimism in the markets.

In Asia, Tokyo’s Nikkei 225 bounced back from early losses, while Chinese markets experienced declines. The Hang Seng in Hong Kong and the Shanghai Composite index both saw losses, reflecting the mixed sentiment in the region.

Analysts are paying close attention to corporate earnings reports and U.S. economic growth data this week. Companies like Alphabet, Tesla, Coca-Cola, Ford, and American Airlines are set to release their latest quarterly results, with expectations for strong profit growth.

Overall, the markets are cautiously optimistic, with the S&P 500 breaking its three-day losing streak on Monday. Tech stocks like Nvidia, Alphabet, and Tesla led the rally, offsetting concerns about their high valuations.

On the political front, President Joe Biden’s announcement that he will not seek re-election could impact the markets, potentially unwinding some of the “Trump trade” that emerged after his weak debate performance last month.

Meanwhile, a global technology outage over the weekend caused disruptions at airports around the world, leading to flight cancellations and delays. Cybersecurity firm CrowdStrike confirmed that the issue was not a cyberattack and had deployed a fix for the faulty software update.

In energy markets, U.S. benchmark crude oil prices remained relatively stable, while the international standard Brent crude saw a slight increase.

Overall, investors will be keeping a close eye on market developments in the coming days, as they navigate through a mix of corporate earnings, economic data, and geopolitical events.