Asian Stock Markets Rise: Investors Are Optimistic

In Asian markets, following a lively end to last week, most shares rose on Monday, boosting investor optimism. This optimism was supported by a technology rally led by artificial intelligence on Wall Street.

As investors returned to the week in a good mood after a positive close in October, the gradual easing of U.S.-China tensions, interest rate cuts implemented by the Federal Reserve, and healthy earnings provided by market favorites like Amazon positively impacted the markets.

Traders are concerned that the ongoing government shutdown may be postponed again due to the lack of compromise between Democrats and Republicans, while they await critical U.S. job data to be announced later in the week.

Despite the government being closed, analysts indicate that this could affect American citizens. Chris Weston from Pepperstone stated, “The shutdown could be the longest on record, but the markets haven’t been significantly affected.”

Weston added, “This week is expected to see an increase in public unrest. Food assistance for low-income families has been halted, and there are increasing disruptions to domestic travel. It is noted that obtaining access to Affordable Care Act plans may become increasingly challenging for Americans.”

Following a drop due to U.S. President Donald Trump's trade tariffs last April, global markets are experiencing an upswing; Wall Street’s three main indexes and several other indexes have reached record levels. These gains are based on Federal Reserve rate cuts and increased investments in artificial intelligence.

This situation has led to very high valuations for some firms; for example, semiconductor manufacturer Nvidia became the first company to reach a market value of $5 trillion last week.

The rise on Wall Street was mostly mirrored in Asian markets at the start of the week. Hong Kong, Singapore, Wellington, and Taipei all increased, while Seoul reached a record high with an increase of more than 1%. Investors were pleased with the easing of relations between South Korea and China.

However, losses were observed in Shanghai, Sydney, and Manila. Tokyo was closed due to a holiday.

Investors are monitoring new developments following the meeting between Trump and Chinese President X Jinping last week. The two leaders reached an agreement to ease China’s rare earth restrictions and lower U.S. tariffs.

Additionally, Treasury Secretary Scott Bessent warned on Sunday that the White House could raise tariffs again if it obstructs rare earth exports.

Oil prices rose after the OPEC+ coalition indicated it would increase production in December, but announced that production would be halted in the first three months of 2026.

Gold prices have been hovering around $4,000 following the announcement that China would lift its tax incentives on product purchases. This precious metal declined after investors realized profits following a more than 60% increase since the beginning of the year, peaking at over $4,381 on October 20.

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