Asia Market Performance Update

BANGKOK — Shares across Asia saw a mixed performance on Thursday following a lackluster day on Wall Street. The selling of technology stocks dragged benchmarks lower, while U.S. futures remained flat and oil prices experienced a decline.

Overview of Key Markets

• Tokyo: The Nikkei 225 index fell by 0.7% in response to data showing a decrease in factory output in January at the fastest pace since May 2020. However, retail sales exceeded expectations.

• Hong Kong and Shanghai: The Hang Seng surged by 0.9%, and the Shanghai Composite index jumped by 1.5%. Additionally, the Shenzhen index was up by 2.5% after regulators introduced new measures to bolster markets, including increased oversight of financial derivatives.

• South Korea and Sydney: The Kospi slipped by 0.3%, while Sydney's S&P/ASX 200 edged 0.1% higher.

Wall Street Recap

On Wednesday, the S&P 500 slipped by 0.2% to 5,069.76, continuing its subdued performance since hitting a record high last week. The Dow Jones Industrial Average dipped by 0.1% to 38,949.02, and the Nasdaq composite sank by 0.5% to 15,947.74, falling just short of its record set in 2021.

Market Trends Report

Treasury yields eased in the bond market following a recent report suggesting that the U.S. economy may have experienced slower growth in late 2023 than previously estimated. Surprisingly, the economy remains resilient amidst high-interest rates implemented to curb inflation.

Tech Stocks Weigh Heavy

Big Tech stocks like Nvidia and Google's parent company, Alphabet, experienced notable declines, putting downward pressure on the market. These tech giants, which have been key drivers of the S&P 500's record-breaking performance, faced a 1.3% and 1.8% drop respectively.

Market Concentration Concerns

Scott Wren, a senior global market strategist at Wells Fargo Investment Institute, voiced concerns about market concentration. He noted that while a few tech stocks driving gains can be beneficial, broad-based strength across various sectors is a healthier indicator of market sustainability.

Energy Market Update

In Thursday's trading, U.S. benchmark crude oil saw a slight decline to $78.44 per barrel on the New York Mercantile Exchange. Meanwhile, Brent crude, the international standard, also dipped to $82.06 per barrel. The U.S. dollar fell to 149.83 Japanese yen from 150.69 yen, contributing to fluctuations in global markets.