Asian Markets Rise Following U.S. Rally and Positive Chinese Data
BANGKOK — Stock markets in Asia saw an uptick on Monday, spurred by a significant rally in U.S. markets and encouraging economic data from China. U.S. stocks experienced their best day since November’s elections, reflecting a recovery from previous losses.
Chinese officials are expected to announce measures aimed at boosting consumer spending, a crucial factor for better economic performance. Economists believe that while increased spending is necessary, comprehensive reforms are also needed to enhance consumer confidence and spending capacity.
In Hong Kong, the Hang Seng Index surged by 1.3%, finishing at 24,276.64. The Shanghai Composite Index also saw a 0.6% increase, reaching 3,429.30. Despite positive signs in industrial output and retail sales in China, the property market continues to struggle, with decreasing home prices and a nearly 10% drop in real estate investment compared to last year.
In Japan, the Nikkei 225 soared by 1.3% to close at 37,539.36, while Seoul’s Kospi index jumped 1.7% to 2,608.68. Australia’s S&P/ASX 200 also posted gains, rising 0.6% to 7,838.20, and Taiwan’s Taiex climbed up by 0.9%. However, markets in Bangkok witnessed a setback, dipping by 0.7%.
On the U.S. front, Wall Street’s upswing came after a downturn, marking the fourth consecutive week of losses, the longest streak since August. The S&P 500 rose by 2.1%, closing at 5,638.94, after recently dipping below record levels.
The Dow Jones Industrial Average increased by 1.7%, reaching 41,488.19, while the Nasdaq composite jumped 2.6% to settle at 17,754.09. Companies in the tech sector, especially in artificial intelligence, contributed to the market’s resurgence, as some stocks rebounded from significant losses.
Amidst these market adjustments, there remains ongoing concern regarding the potential impact of government policies, especially those related to tariffs and trade. The trade challenges faced by the U.S. under President Trump have raised questions about long-term economic repercussions. The administration is focusing on revitalizing manufacturing jobs and adjusting federal workforce levels, but uncertainty surrounding these moves has affected consumer confidence and spending habits.
Additionally, preliminary surveys indicate a continued decline in consumer sentiment, primarily driven by future uncertainties rather than current economic conditions. Despite this, the job market and broader economy appear stable for now.
In commodity markets, U.S. crude oil prices rose slightly to $67.66 per barrel, while Brent crude increased to $71.07. The U.S. dollar gained value against the Japanese yen but slightly dipped against the euro.
As market participants navigate these shifts, the overall outlook will continue to depend on both domestic economic moves and international developments.
