Asian stock markets experienced a noticeable upswing on Monday, buoyed by the optimistic momentum from Wall Street's performance last Friday. Investors are cautiously hopeful about a positive interest rate environment after recent data indicated a slower-than-anticipated rise in US consumer price inflation, prompting anticipation of further interest rate cuts by the Federal Reserve next year. Friday's trading in Asian markets had yielded mixed results.
In addition to the favorable financial data, news that a US government shutdown was averted over the weekend contributed to the positive market sentiment.
Australia's stock market showed a notable improvement on Monday, breaking a three-day losing streak. Propelled by the encouraging signals from Wall Street, the S&P/ASX 200 index approached the 8,200.00 mark, driven by gains in sectors like technology, mining, and finance.
The S&P/ASX 200 Index climbed 113.00 points, or 1.40%, reaching 8,180.00, after peaking at 8,177.50. Meanwhile, the broader All Ordinaries Index rose 114.60 points, or 1.38%, to 8,431.30. In the mining sector, companies such as BHP Group and Fortescue Metals saw modest increases of 0.2 to 0.4 percent, with Mineral Resources up by over 2 percent, although Rio Tinto dipped by 0.4 percent. Oil stocks generally rose, with Santos and Beach Energy both gaining nearly 1 percent, Origin Energy increasing by almost 2 percent, and Woodside Energy advancing 1.5 percent.
Technology stocks experienced significant growth. Block, the owner of Afterpay, surged almost 3 percent, Zip skyrocketed nearly 7 percent, Xero increased by over 1 percent, Appen soared over 7 percent, and WiseTech Global edged up 0.5 percent.
Gold miners were predominantly on the rise, as Evolution Mining gained over 1 percent, Northern Star Resources added nearly 1 percent, Newmont increased by over 3 percent, with Gold Road Resources and Resolute Mining each up almost 2 percent.
Australia’s major banks also saw notable gains, with National Australia Bank and Westpac each climbing almost 2 percent, while Commonwealth Bank and ANZ Banking rose by over 2 percent each.
On the currency front, the Australian dollar was trading at $0.626 on Monday.
Turning to Japan, the stock market rallied on Monday, ending a six-day losing streak. Following Wall Street’s lead, the Nikkei 225 Index closed the morning session at 39,043.59, moving up 341.69 points or 0.88 percent, after reaching a high of 39,102.05. Japanese stocks had closed slightly down on Friday.
In specific sectors, SoftBank Group gained nearly 1 percent, while Fast Retailing edged up 0.5 percent. In the automotive space, Honda and Toyota both rose by almost 2 percent. Tech sector stocks like Tokyo Electron increased by over 1 percent, Advantest advanced nearly 4 percent, and Screen Holdings edged up 0.3 percent.
In banking, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial both gained almost 1 percent, with Mizuho Financial rising by 0.4 percent. Exporters such as Panasonic and Mitsubishi Electric increased by over 1 percent each, while Canon edged up 0.4 percent and Sony added nearly 1 percent.
Notable gainers included Hino Motors, rising over 4 percent, and Mitsubishi Motors adding more than 3 percent, with Sharp, Chugai Pharmaceutical, and Recruit Holdings each advancing almost 3 percent. There were no significant decliners reported.
In currency markets, the US dollar was trading within the lower 156 yen range on Monday.
Elsewhere in Asia, stock indices in Taiwan were up 2.7 percent, with Singapore, South Korea, and Indonesia registering gains between 1.0 and 1.5 percent. New Zealand, China, Hong Kong, and Malaysia saw more modest increases between 0.2 and 0.5 percent.
On Wall Street, major indices surged on Friday, recovering from earlier weakness and moving firmly into positive territory. The Dow rose 498.02 points, or 1.2 percent, to 42,840.26, extending the modest gain from Thursday after ending a ten-day losing streak. The Nasdaq leaped 199.83 points or 1.0 percent to 19,572.60, and the S&P 500 increased by 63.77 points or 1.1 percent to 5,930.85.
In Europe, despite recovering from their worst levels, stocks ended modestly lower. The German DAX Index decreased by 0.4 percent, while the French CAC 40 Index and the UK’s FTSE 100 Index both slipped by 0.3 percent.
Crude oil prices increased on Friday as the dollar eased from two-year highs following softer PCE readings, reducing concerns about future interest rate cuts. West Texas Intermediate crude oil futures rose by $0.08, or approximately 0.1 percent, to $69.46 a barrel, though oil futures had decreased by 2.5 percent over the week.
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