BANGKOK – Asian stock markets showed positive movement early Monday, and bitcoin made headlines by reaching an all-time high just ahead of President-elect Donald Trump’s inauguration. U.S. markets remained closed that day due to the holiday.
Bitcoin’s price skyrocketed, climbing to $109,134 from $99,563, according to CoinDesk. The surge reflects a growing optimism among investors regarding cryptocurrencies, particularly since Trump’s election.
European markets also experienced gains in early trading. The UK’s FTSE 100 edged up by 0.1% to 8,515.80, while France’s CAC 40 increased by 0.2% to reach 7,729.06. Germany’s DAX remained stable at 20,902.00.
Futures for the S&P 500 and the Dow Jones Industrial Average went up by 0.1%, indicating a favorable outlook for U.S. markets.
In Hong Kong, the Hang Seng index jumped by 1.8%, reaching 19,925.81, following the Chinese central bank’s decision to keep its key lending rates steady. The Shanghai Composite index saw a slight increase of 0.1% to 3,244.38.
A Hong Kong court has granted Country Garden, a struggling property developer, an extension until next month to negotiate with creditors as the company seeks recovery from a prolonged slump in China’s real estate market.
Market sentiment was bolstered by positive remarks from U.S. and Chinese officials ahead of Trump’s inauguration, as both countries pledged to improve relations. This has helped to ease concerns over escalating trade tensions and the potential for increased tariffs on Chinese goods.
Japan’s Nikkei 225 index rose by 1.2% to 38,902.50, although the dollar dipped slightly against the Japanese yen, trading at 156.17 yen. The possibility of Japan’s central bank raising interest rates has contributed to this change, as higher rates typically strengthen the yen.
In South Korea, the Kospi index decreased by 0.1% to 2,520.05, while the S&P/ASX 200 in Australia rose by 0.5% to 8,347.40. Taiwan’s Taiex also gained 0.5%, and India’s Sensex experienced a surge of 0.7%. Bangkok’s SET index rose by 0.1%.
Early trading also saw U.S. benchmark crude oil prices fall slightly to $77.20 per barrel, with Brent crude dropping to $80.56.
Last Friday, the S&P 500 rose by 1%, while the Dow increased by 0.8%, and the Nasdaq composite gained 1.5%. The market was positively influenced by SLB, a provider of oilfield services, which reported quarterly profits and revenues that exceeded expectations. The company’s stock rose by 6.1% after announcing a dividend increase and plans to return $2.3 billion to investors through stock buybacks.
All major tech companies, referred to as the “Magnificent Seven,”—which includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla—all reported growth, showing their significant impact on the performance of the S&P 500.
While these shares have faced some scrutiny due to potential overvaluation, recent encouraging reports on U.S. inflation have lifted overall market sentiment. Investors are hopeful that the Federal Reserve might continue to cut interest rates, which could stimulate economic growth and enhance investment prices, though it also raises concerns about inflation.
In recent weeks, Wall Street has experienced fluctuations, driven by changing economic reports that influence traders’ expectations regarding Fed policies. Lower inflation worries have pushed Treasury yields down, supporting a rise in stock prices, while concerns about inflation have led to the opposite effects.
