Tech Sends Asian Stocks Higher Ahead of China Meet – Asia Market Wrap

A rise in technology companies lifted Asian stocks broadly, ahead of this week’s events, which include Federal Reserve Chair Jerome Powell’s congressional appearance and China’s National People’s Congress.

Tech stocks outpaced the regional index, with Taiwan Semiconductor Manufacturing and Samsung Electronics leading the way. Japan’s blue-chip Nikkei-225 Stock Average reached 40,000 for the first time, while South Korea’s Kospi index surged up to 1.5%. Their gains mirrored robust increases in US peers on Friday.

“The Nikkei 225’s 40,000 is certainly a key psychological level, which could offer some resistance for the index and bring volatility,” said Charu Chanana, a strategist at Saxo Capital Markets in Singapore. “But when structural factors remain in favour, and yen weakness continues, it is likely to be more a bullish signal rather than fueling any concerns of Japanese stocks being overbought.”

Chinese equities moved ahead of the 14th National People’s Congress, an annual parliamentary assembly in Beijing that begins on Tuesday. Most healthcare equities rose in expectation of additional stimulus measures from Congress to help a struggling economy.