Asia Markets Overview
Asian markets mostly rose on Monday as China’s leaders began a significant meeting, sparking hopes for economic stimulus aimed at boosting the world’s second-largest economy. Oil prices also surged following OPEC+'s announcement of continued production cuts through the end of the year.
Index Performance:
Hong Kong’s Hang Seng: Up 0.1% at 20,540.44
Shanghai Composite Index: Increased by 0.3% to 3,281.76
South Korea’s Kospi: Rose 1% to 2,568.85
Australia’s S&P/ASX 200: Gained 0.2% to 8,134.60
Taiwan’s Taiex: Added 0.3%
Tokyo Market: Closed for a holiday
Oil Prices Surge with OPEC+ Cuts
OPEC+ announced an extension of its production cuts through year-end, likely influencing oil markets as the U.S. presidential election nears. Oil benchmarks reacted with notable gains:
U.S. crude: Up $1.27, trading at $70.76 per barrel.
Brent crude: Rose by $1.30 to $74.70 per barrel.
China's Economic Meeting Fuels Stimulus Hopes
China’s Standing Committee of the National People’s Congress is meeting this week, and analysts are anticipating announcements related to major spending initiatives. The market is buoyant with speculation around a potential stimulus package, as noted by Stephen Innes from SPI Asset Management.
Friday’s U.S. Market Recap
U.S. markets ended Friday on a positive note, primarily driven by Amazon’s strong earnings, which helped counter concerns surrounding Big Tech’s AI spending and a weaker-than-expected jobs report.
S&P 500: Gained 0.4% to 5,728.80
Dow Jones Industrial Average: Up 0.7% to 42,052.19
Nasdaq Composite: Rose 0.8% to 18,239.92
Amazon's 6.2% surge contributed to the S&P 500’s upward momentum, while Intel’s stock also rallied 7.8% on better-than-expected revenue and a strong future outlook. Cardinal Health’s 7% jump on favorable profit forecasts provided additional support.
Economic Data Impact
The U.S. jobs report revealed only 12,000 jobs added in October, well below the 115,000 expected. Factors contributing to the miss included recent hurricanes and Boeing’s strike. Manufacturing also contracted more than anticipated, with Federal Reserve rate cuts now widely expected.
Treasury Yields:
2-year yield: Rose slightly to 4.20% after initial declines.
10-year yield: Increased to 4.37% from 4.29%, following a similar pattern.
Currency Market Movements
In early Monday trading, the dollar weakened against the yen and euro:
Dollar: Down to 152.05 Japanese yen from 152.42.
Euro: Slightly down to $1.0879 from $1.0881.
Outlook
Market sentiment remains optimistic as investors anticipate Chinese economic support and potential Fed rate cuts. Asian shares are buoyed by these factors, while oil prices and Treasury yields react to geopolitical and economic data signals.
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