The U.S. stock market is expected to open higher on Monday. Previously, U.S. stocks just experienced the largest single-week decline since April last year.
During the Asian trading session, the NASDAQ 100 index futures, which are dominated by technology stocks, rose by 1.3%, while the broader S&P 500 index futures increased by 0.7%.
Analysts said that last Friday, stocks related to artificial intelligence ( AI ) faced selling pressure, causing the Nasdaq 100 index to fall by 5.5% for the week. Investors are concerned that the credit spreads of AI data center companies may widen further. After this round of selling, investors are re-evaluating the market situation.
The positive market sentiment on Monday also spread to Asia. South Korea's Composite Stock Price Index (Kospi) rose by 1.8%. This index is dominated by chip manufacturers such as Samsung Electronics and (SK) Hynix, which had seen a cumulative decline of 11% last week.
Oil prices have fallen, with the international benchmark Brent crude oil price dropping by 2.4% to $107.27 per barrel.
Prashant Bayani, Chief Investment Officer for Wealth Management Asia at BNP Paribas in France ( Prashant Bhayani ), stated: "The market has rebounded because there was no substantial escalation of the Iran war over the weekend."
Bayani added that after reducing their risk exposure last week, traders are currently taking a wait-and-see attitude towards transactions related to AI, while the rise in U.S. stock index futures has driven a catch-up rally in the Japanese stock market.
The Japan Tosei Index (Topix) fell by nearly 1% in the early trading on Monday, but gradually regained its losses in the afternoon and ultimately closed almost flat. The Nikkei 225 index, which is dominated by technology stocks, fell by 0.6%.
The selling pressure in Indonesia's stock market further intensified. Previously, MSCI (MSCI) threatened to remove Indonesia from its benchmark index, triggering a sharp decline in the local stock market. The Jakarta Composite Index fell by 5% on Monday, continuing the 11% drop from last Friday.
As the largest economy in Southeast Asia, Indonesia's stock market has performed at the bottom of the global rankings this year, with a cumulative decline of 44% since January.
