Asia Morning August 4

Asia Morning: U.S. Tech Stocks at Record Highs

On Monday, U.S. stocks advanced further. The Dow Jones Industrial Average jumped 236 points (+0.89%) to 26664, the S&P 500 gained 23 points (+0.72%) to 3294, and the Nasdaq 100 climbed 149 points (+1.37%) to a record close of 11055.

Nasdaq 100 Index: Daily Chart

Source: GAIN Capital, TradingView

Market sentiment was boosted by upbeat U.S. manufacturing data and merger & acquisition deals.

Software & Services (+2.9%), Automobiles & Components (+2.17%), Technology Hardware & Equipment (+2.03%) sectors led the market higher. Microsoft (MSFT +5.62% to $216.54) and Apple (AAPL +2.52% to $435.75) closed at all-time highs.

Regarding U.S. economic data, the Markit U.S. Manufacturing Purchasing Managers' Index (final reading) posted at 50.9 (still in expansion mode, slightly below 51.3 expected). The ISM Manufacturing Index jumped to 54.2 in July (53.6 expected). Construction Spending declined 0.7% on month in June (+1.0% expected).

European stocks rebounded. The Stoxx Europe 600 Index jumped 2.05%, Germany's DAX 30 surged 2.71%, France's CAC 40 rose 1.93%, and the U.K.'s FTSE 100 climbed 2.29%.

The benchmark U.S. 10-year Treasury yield stepped up to 0.558% from 0.536% Friday.

Spot gold price added $2.00 to $1,976 an ounce, and spot silver price edged lower to $24.32 an ounce.

U.S. WTI crude oil futures (September) rose 1.8% to $41.01 a barrel.

On the forex front, the U.S. dollar managed to keep its strength, with the ICE U.S. Dollar Index edging higher to 93.51.

EUR/USD remained under pressure closing at 1.1762. GBP/USD failed to regain the 1.3100 level.

The Markit Eurozone Manufacturing Purchasing Managers' Index posted at 51.8 for July final reading (51.1 expected). Germany's (51.0 vs 50.0 expected), France's (52.4 vs 52.0 expected) and the U.K.'s (53.3 vs 53.6 expected) Markit Manufacturing PMIs also pointed to expansion (above 50.0).

Following a 1.1% rebound Friday, USD/JPY climbed higher to 105.95 (day-high at 106.47). Japan's 1Q GDP shrank at an annualized rate of 2.2% (vs -2.8% expected), while the Jibun Bank Japan Manufacturing PMI posted 45.2 in July (up from 42.6 in June). This morning, Tokyo's July Core CPI growth was reported at +0.4% on year (+0.1% expected).

AUD/USD was down for a second day as it slipped 0.3% to 0.7124. Australia's central bank is expected to keep its key interest rate unchanged at 0.25% today.

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