Asia Morning: Tech Stocks Lead U.S. Market Higher

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Investors were encouraged by a series of big-ticket merger & acquisition deals...

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On Monday, U.S. stocks closed 1% higher. The Dow Jones Industrial Average rose 327 points (+1.18%) to 27993, the S&P 500 gained 42 points (+1.27%) to 3383, and the Nasdaq 100 rebounded 190 points (+1.72%) to 11277.

Dow Jones Industrial Average: Daily Chart


Sources: GAIN Capital, TradingView


Investors were encouraged by a series of big-ticket merger & acquisition deals. For example, chipmaker Nvidia (NVDA +5.79%) agreed to a $40 billion acquisition of Arm Holdings from Japan's SoftBank Group. And Gilead Sciences (GILD +2.22%) would buy Immunomedics Inc (IMMU +97.99%) for $21 billion.

Technology Hardware & Equipment (+2.71%), Semiconductors & Semiconductor Equipment (+2.43%) and Real Estate (+2.16%) sectors gained the most. Kohls Corp (KSS +9.56%), Tapestry Inc (TPR +8.48%) and Oracle (ORCL +4.57%) were among the top gainers, while Citigroup (C -5.59%) and Kroger Company (KR -4.45%) were top losers.

Tesla (TSLA) surged 12.58%.

Approximately 60.2% (59.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 34.7% (27.3% in the prior session) were trading above their 20-day moving average.

European stocks were mixed. The Stoxx Europe 600 Index was up 0.15%, France's CAC 40 advanced 0.35%, while Germany's DAX 30 eased 0.07% and the U.K.'s FTSE 100 declined 0.10%.

The benchmark U.S. 10-year Treasury yield climbed to 0.680%.

U.S. WTI crude oil futures (October) fell 0.2% to $37.26 a barrel.

Spot gold jumped $15.00 (+0.78%) to $1,956 an ounce.

On the forex front, the U.S. dollar eased against its major peers, with the ICE Dollar Index dropping 0.3% on day to 93.05.

EUR/USD gained 0.2% to 1.1866. Official data showed that the eurozone's industrial production grew 4.1% on month in July (+4.2% expected). On the other hand, the German ZEW Current Situation Index for September will be released later in the day (-72.0 expected).

GBP/USD rebounded 0.4% to 1.2849. U.K. Prime Minister Boris Johnson's Internal Market Bill, his plan to rewrite part of the Brexit deal, passed its first hurdle in Commons. Later today, investors will focus on the U.K. jobless rate for the three months to July (4.1% expected).

USD/JPY slid 0.4% to 105.74. Japan's Chief Cabinet Secretary Yoshihide Suga has won the ruling Liberal Democratic Party presidential election and will replace Shinzo Abe as Prime Minister.

Commodity-linked currencies were broadly mixed against the greenback. AUD/USD and USD/CAD were flat at to 0.7285 and 1.3177 respectively, while NZD/USD climbed 0.5% to 0.6701.


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