Asia markets mixed after recent sell-off, but Hong Kong poised to fall

Investors will look to the upcoming earnings season to see whether stocks can recover from recent losses or if more declines are ahead.

Bond yields have risen over the past three months, bringing down the value of stocks — but the more imminent and real risk is on the earnings front as we enter the third-quarter reporting season, according to Gerry Fowler, head of European equity strategy at UBS.

UBS has identified stocks that could surprise, both positively and negatively, when their earnings results are released in the coming weeks.

CNBC Pro subscribers can read more about the UBS stock picks here.

— Ganesh Rao

Markets may be facing “unusual amount” of uncertainty — but there are good opportunities, according to Sanjay Ayer of the U.S.-headquartered WCM Investment Management.

CNBC Pro takes a look at the stocks he sees good potential in across three “brand new secular growth themes.”

CNBC Pro subscribers can read more here.

— Amala Balakrishner

A handful of technology stocks climbed in Monday’s session as investors prepared for their earnings reports coming this week. Those gains helped the technology-heavy Nasdaq Composite rise 0.4%, performing the best of the three major indexes.

Spotify has rallied more than 3% in the session. The streaming company is one of the major names expected to report before the bell on Tuesday.

Alphabet and Microsoft both added more than 1%, while Snap gained more than 2%. All three companies are slated to post their quarterly financial releases after the bell on Tuesday.

Amazon and Meta traded up by more than 1% and 2%, respectively. Meta’s report is expected after Wednesday’s closing bell, followed by Amazon after the market closes on Thursday.

To be sure, not every tech stock was rising ahead of earnings. IBM and Intel, which also report later in the week, both slipped in Monday’s session.

— Alex Harring

Bitcoin began the Monday trading day above the key resistance level of $30,000, extending gains from the previous week — its best week since June — helped by optimism around the likelihood the market will soon get its first spot bitcoin ETF as well as a flight to safety.

At 8 a.m. ET the flagship cryptocurrency traded 2.63% higher at $30,670.90, according to Coin Metrics. Ether, crypto’s other “blue chip” asset that has had a higher correlation with bitcoin recently, was up 2.5% at $1,677.44.

It has reached $30,000 at several points in 2023 but has struggled to make a sustained move higher. Investors are expecting the approval of a bitcoin ETF to change that between the end of the year and the first half of 2024.

— Tanaya Macheel

Pershing Square’s Bill Ackman said he’s covered his short position in long-term Treasurys out of concern that heightened geopolitical risk could drive investors to safe-haven assets, pushing up bond prices.

“There is too much risk in the world to remain short bonds at current long-term rates,” Ackman said in a post on X, formerly known as Twitter, on Monday.

Ackman, who is a billionaire hedge fund manager, first revealed he was bearish on the 30-year Treasury note in August. He has been a vocal supporter of Israel in its conflict with Hamas, posting frequently about the war.

— Alex Harring, Yun Li

This week starts off with the S&P 500 below a key technical that could signal further downside for stocks.

On Friday, the S&P 500 closed below its 200-day moving average for the first time March 17.

The index had tested and bounced off the 200-day level earlier this month, but the rally proved to be weak and the bounce reversed.

The Nasdaq Composite is still above its 200-day, but it is 10% below its 52-week high.

— Jesse Pound, Gina Francolla