Dollar Rises Amid French Budget Woes – Asia Market Wrap
Most Asian stocks climbed, led by technology companies, as new US restrictions on Chinese access to critical components for chips and AI proved less harsh than expected.
Equity indexes rose in economies ranging from Japan to Australia, while Chinese stocks dipped after the Yuan plummeted to a one-year low versus the Dollar over fears about a faltering economy and rising tensions with the US.
US futures remained flat after the S&P 500 set its 54th closing record this year on Monday, while the tech-heavy Nasdaq 100 gained more than 1%.
The overall tone for Asian shares was optimistic, with investors relieved that the Biden administration’s new curbs on tech exports to China fell short of earlier recommendations that would have sanctioned more significant Chinese corporations. However, mood towards the world’s second largest economy remains weak, following disappointment with Chinese leaders’ decision not to release the readout of a major meeting from which many had hoped to receive new policy signals.
The Dollar climbed higher in Asian trading. It ended a three-day losing skid Monday, after Trump’s threat to the BRICS nations. The Euro was little changed after losing as much as 1.1% the day before amid political upheaval in France, where bonds and stocks came under additional pressure.
