Asian Stock Markets Continue to Rise

Asian Markets Upward Trends

Asian stock markets recorded gains on Monday following a week of investor optimism. The artificial intelligence driven technology rally reflected the positive outcomes seen on Wall Street.

Investors returned in good spirits after favorable developments at the end of October. The easing of China-U.S. tensions, the Federal Reserve’s decision to cut interest rates, and healthy earnings reports from market favorites like Amazon encouraged investors.

Important U.S. employment data to be released during the week is also on investors' radar. However, due to the ongoing government shutdown, there is a risk that these figures may be delayed as no reopening agreement has been reached between the Democratic and Republican parties.

While the government shutdown has not had a significant impact on the markets so far, analysts warn it may begin to affect Americans. Chris Weston from Pepperstone stated, "The shutdown could reach record durations, yet it has not created much change in the markets."

Weston added, "This week, food aid will be disrupted for low-income families, and there may be delays in travel on domestic flights. Issues may also escalate for Americans seeking new registrations under the Affordable Care Act."

In April, following the trade tariffs implemented by U.S. President Donald Trump, the stock markets faced a sharp decline. However, subsequently, the three major indices on Wall Street and many other exchanges reached new record levels.

These gains were achieved due to expectations of Federal Reserve interest rate cuts and the ongoing race in artificial intelligence investments. This situation has pushed the valuations of some firms to extraordinary levels. Nvidia reached a value of $5 trillion last week, becoming the first company to surpass this milestone.

Gains on Wall Street were also observed in Asia on Friday. Stock markets in Hong Kong, Singapore, Wellington, and Taiwan rose. Seoul recorded an increase of more than 1% due to the easing relations between South Korea and China.

In contrast, losses were seen in Shanghai, Sydney, and Manila. Tokyo was closed due to a holiday.

Investors are also following developments after the meeting between Trump and Chinese President Xi Jinping last week. The two leaders agreed to ease China's rare earth restrictions and discussed the reduction of U.S. tariffs.

However, Treasury Secretary Scott Bessent indicated that the White House could raise new tariffs if it blocks rare earth exports to China.

Oil prices increased after the OPEC+ coalition announced plans to boost production in December. However, they are considering halting production for the first three months of 2026.

Gold prices fluctuated around $4,000 after China announced the removal of tax incentives for purchasing this metal. This precious metal declined following profit-taking after more than a 60% increase since its historical peak of $4,381 on October 20.

Key Indicators (as of 0230 GMT):

• Hong Kong - Hang Seng Index: +0.5% at 26,035.61
• Shanghai - Composite Index: -0.4% at 3,939.47
• Tokyo - Nikkei 225: Closed
• Euro/dollar: +0.1% at $1.1528
• Pound/dollar: -0.2% at $1.3136
• Dollar/new Japanese yen: -0.1% at 154.10 yen
• Euro/pound: +0.2% at 87.76 pence
• West Texas Intermediate: +0.3% at $61.18
• Brent North Sea Crude: +0.3% at $64.99
• New York - Dow: +0.1% at 47,562.87 (close)
• London - FTSE 100: -0.4% at 9,717.25 (close)