BANGKOK (AP) — Most global stocks fell on Monday following a slight retreat in U.S. shares from their recent peaks, while several Asian markets remained closed for holidays.
In early European trading, Germany’s DAX dropped by 1.1% to 21,178.37. Paris’s CAC 40 decreased by 0.8% to 7,863.70, and the UK’s FTSE 100 fell by 0.3% to 8,473.33.
Futures for the S&P 500 slid 1.6%, and the Dow Jones futures dropped by 0.9%.
In Hong Kong, shares climbed after news about a Chinese AI startup, DeepSeek, which requires less investment compared to other models. While investors sold tech stocks in the U.S. and Japan, they turned towards Chinese tech firms, pushing the Hang Seng index up by 0.7% to 20,197.77. Alibaba’s shares gained 2.9%, and Baidu’s rose by 4.9%.
However, the Shanghai Composite index decreased by 0.1% to 3,250.60, influenced by a survey showing a drop in China’s export orders to a five-month low. China’s official manufacturing purchasing managers index fell to 49.1 in January from 50.1 in December, indicating a contraction in the manufacturing sector.
Zichun Huang from Capital Economics noted that the slowdown might be short-lived due to increased government spending and the usual factory closures during the Lunar New Year holidays starting Tuesday. However, he emphasized that this troubling data highlights the challenges for policymakers in achieving sustainable growth.
In Japan, the Nikkei 225 fell by 0.9% to 39,565.80, influenced by the Bank of Japan raising its benchmark interest rate to 0.25%, the highest since 2008. Shares related to computer chips also suffered, with Tokyo Electron down 4.9% and Advantest down 8.6%.
The U.S. dollar remained steady against the Japanese yen at 155.45, slightly down from 155.72. The euro dipped to $1.0477, down from $1.0483. The SET in Bangkok also decreased by 0.7%.
Trading was slow in many Asian markets due to public holidays. Over the past weekend, U.S. stocks saw a pullback from their highs, with the S&P 500 slipping by 0.3% to close at 6,101.24. The Dow Jones lost 0.3%, and the Nasdaq composite fell by 0.5%.
Despite the pullback, traders remained calm with steady bond market conditions. Recent worries about inflation and rising U.S. debt have seen Treasury yields climb, putting pressure on stock prices. However, encouraging news on inflation allowed stocks to rebound.
The earnings season for major U.S. companies has started well, with stronger-than-expected profits helping to support market performance. While higher Treasury yields can negatively impact stock prices, companies are responding by delivering better earnings.
As of early Monday, U.S. benchmark crude oil prices dipped by 25 cents to $74.41 per barrel, while the international standard, Brent crude, fell by 29 cents to $77.26.
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