Australian shares are set to open higher, after US stocks finished the week in positive territory.

ASX futures were up 0.4% or 26 points as of 8:30am on Monday, suggesting a higher open.

U.S. stocks ended the holiday-shortened week with another advance as the S&P 500 notched its first record close in over two years.

DJIA climbed 394 points, or 1%, to a record 37863, the S&P 500 gained 1.2% to 4839 and the Nasdaq rose 1.7% to 15310.

In commodity markets, Brent crude oil fell 0.7% to US$78.56 a barrel while gold was up 0.3% to US$2,029.49.

In local bond markets, the yield on Australian 2 Year government bonds was up at 3.95% while the 10 Year yield was up at 4.29%. US Treasury notes were mixed, with the 2 Year yield up at 4.38% and the 10 Year yield down at 4.12%.

The Australian dollar was unchanged at 65.95 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 97.99.


Chinese shares closed lower amid volatile trading. Investor sentiment was cooled by media reports of a major brokerage suspending short selling for some clients in mainland markets, said Maybank head of retail research Sonija Li. Auto-parts and software stocks led losses. Ningbo Tuopu Group and Jiangsu Hengli Hydraulic slipped 4.0% and 0.7%, respectively. Beijing Kingsoft Office Software lost 1.8%. The liquor sector posted gains. Kweichow Moutai advanced 1.5% and Shanxi Xinghuacun Fen Wine Factory was up 0.6%. The benchmark Shanghai Composite Index shed 0.5% to 2832.28, taking weekly losses to 1.7%. The Shenzhen Composite Index fell 0.9% and the ChiNext Price Index was down 1.0%.

Hong Kong shares ended lower, dragged by tech and pharmaceutical stocks. The benchmark Hang Seng Index slipped 0.5% to 15308.69, taking the week's losses to 5.8%. Investor sentiment was dented by concerns over the Fed's rate-cut timeline, said Maybank head of retail research Sonija Li. Continued worries over China's economic outlook also weighed on the market. Hansoh Pharmaceutical Group and CSPC Pharmaceutical Group lost 3.9% and 3.0%, respectively. dropped 2.5% and Tencent Holdings fell 2.3%. Alibaba Group shed 1.65%. The Hang Seng Tech Index closed 1.45% lower. Meanwhile, Nongfu Spring was up 2.3% and AIA Group advanced 2.0%.

Japanese stocks ended higher, led by gains in semiconductor and other electronics stocks as the yen hit a seven-week low. Advantest gained 8.2% and Renesas Electronics climbed 7.6%. The Nikkei Stock Average rose 1.4% to 35963.27. Investors are focused on the yen's movements ahead of the Bank of Japan's two-day policy meeting starting Monday. USD/JPY rises to 148.73--its highest level since Nov. 28--from 148.16 as of Thursday 5 p.m. Eastern Time. The 10-year Japanese government bond yield rises 1.5 basis points to 0.665%.

Indian shares ended higher, tracking Wall Street's overnight gains. The benchmark Sensex rose 0.7% to 71683.23 , ending a three-session losing streak. Tech and auto stocks led gainers. Mahindra & Mahindra rose 2.4% and TVS Motor advanced 1.3%. Tech Mahindra gained 2.6% and Tata Consultancy Services was 1.0% higher. Hindustan Zinc rose 1.1% after its fiscal 3Q results. Bank stocks weighed on the market, with IndusInd Bank dropping 3.2% and HDFC Bank down 1.1%. Investors are waiting for Reliance Industries' fiscal 3Q results due after the market close.


European stocks fell in late trading with the Stoxx Europe 600 index down 0.2% at 469.52 as markets toned down their expectations of early rate cuts by major central banks. "The market recalibrates its expectations for interest rate cuts after push back from Fed and ECB members," XTB research director Kathleen Brooks, says in a note. U.S. markets rose driven by the gains in tech and communication stocks, while European markets struggled due to their lack of exposure to tech stocks, Brooks says. Germany's DAX traded flat while France's CAC-40 was down 0.4%.

The FTSE 100 ended Friday up 0.04%, clawing back some minor gains after a broadly negative week. The index has seen its third overall weekly loss since the beginning of the year, as rate cut expectations being pushed back to the second half of the year hit European stocks, IG Group senior market analyst Axel Rudolph says in a research note. "Elevated tensions in the Middle East have led to a third straight day of gains for the oil price, whereas the gold price only rose marginally for a second consecutive day, as flight-to-quality flows into the precious metal abate and the greenback extends its gains," Rudolph says.

North America

U.S. stocks ended the holiday-shortened week with another advance as the S&P 500 notched its first record close in over two years.

DJIA climbed 394 points, or 1%, to a record 37863, the S&P 500 gained 1.2% to 4839 and the Nasdaq rose 1.7% to 15310.

Technology stocks lead the gains after a muted start to the year, as chip shares benefit from an upbeat assessment by Taiwan Semiconductor.

Economic news is mixed as existing home sales in 2023 dropped to the lowest level in 28 years, while the University of Michigan consumer sentiment rose 13% in the first half of January.