Stock market today: Asian shares largely higher after recovery on Wall St

Asian shares were mostly higher on Monday after US shares recovered from Wall Street's worst day since April to end higher for the week.

US futures fell as oil prices rose.

The Nikkei 225 in Tokyo rose 0.3% to 38,758.96 and the Kospi in Seoul rose 0.7% to 2,705.87.

The Australian S&The P/ASX 200 rose 0.7% to 2,705.87 and the Shanghai Composite index rose 0.3% to 3,097.86, while the government reported corporate profits rose 4.3% year-on-year in January and April had risen.

Hong Kong's Hang Seng fell 0.2% to 18,576.65.

Taiwan led the advance, with heavy buying of computer chip-related stocks pushing the Taiex up 1.3% to a new record. MediaTek, a semiconductor company that supplies chips for wireless communications, high-definition television and portable mobile devices, rose 8.4%.

Taiwan Semiconductor Manufacturing Corp. posted a more modest gain of 0.5%.

“The robust global semiconductor cycle is positive for Taiwan's growth prospects,” ANZ's Raymond Yeung and Bansi Madhavani wrote in a research note. “The global semiconductor cycle is strong thanks to breakthroughs in artificial intelligence, cloud computing and 5G telecommunications technology,” the report said.

On Friday the S&P500 gained 0.7% to 5,304.72, regaining all losses from the previous two days. It posted a small gain this week, extending its weekly winning streak to five and is just shy of Tuesday's record.

The Dow Jones Industrial Average rose less than 0.1% to 39,069.59, and the Nasdaq composite gained 1.1% to 16,920.79, surpassing a record high set earlier this week.

Nvidia rose another 2.6% on Friday, making it the biggest force behind the S&P500 upwards.

This week's turmoil for stocks came despite another explosive earnings report from Nvidia, which has become one of Wall Street's most influential stocks amid a frenzy over artificial intelligence technology. The enthusiasm around AI had pushed some stocks to heights that critics called overblown, but Nvidia's eye-popping growth and forecasts for more suggest it could continue.

The overall U.S. economy is showing continued strength in terms of U.S. household spending, but the numbers beneath the surface may not be as encouraging.

The market got a small boost on Friday from a report showing that overall sentiment among US consumers weakened less in May than preliminary data had suggested. Perhaps more importantly, the University of Michigan report also said that US consumer expectations for next year's inflation rose less in May than previously feared.

That could help prevent a vicious cycle in which high inflation expectations among U.S. households prompt them to behave in ways that only worsen inflation.

Concerns about persistently high inflation were behind this week's shaky trading after indexes recently set records. The weakness started after the Federal Reserve released the minutes of its latest policy meeting on Wednesday. It showed some officials discussing the possibility of raising rates if inflation worsens.

Stocks fell further after reports on Thursday showed the US economy is stronger than expected. Such a force could even frighten Wall Street, as it could maintain upward pressure on inflation.

That in turn could delay a cut in the Federal Reserve's key interest rate, which is at the highest level in more than two decades. The Fed is attempting the difficult feat of slowing the economy enough through high interest rates to quell high inflation, but not so much that it squeezes the labor market.

Treasury yields rose last week on such concerns but remained largely steady on Friday after the consumer confidence report. The yield on the 10-year government bond fell to 4.46% from 4.48% at the end of Thursday. The two-year yield, which better tracks expectations for Fed action, held steady at 4.94%.

U.S. benchmark crude rose 21 cents to $77.93 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, 85 cents were collected.

Brent crude, the international standard, added 21 cents to $82.05 a barrel.

In currency transactions, the US dollar fell from 156.99 yen to 156.77 Japanese yen.

The euro rose from $1.0844 to $1.0851.

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