Most Asian stock markets advanced on Monday, buoyed by continued investor optimism following a strong finish to last week and a renewed surge in technology shares driven by artificial intelligence gains on Wall Street.
Traders returned from the weekend in an upbeat mood, encouraged by a string of positive developments that closed October — including easing China–US tensions, a Federal Reserve interest rate cut, and strong corporate earnings from major firms such as Amazon.
Market participants are now turning their attention to key US employment data expected later in the week. However, uncertainty remains over whether the release will proceed as planned amid the ongoing US government shutdown, with Democrats and Republicans still deadlocked over a reopening agreement.
While the closure has yet to seriously affect financial markets, analysts have warned of potential repercussions for ordinary Americans. Chris Weston of Pepperstone noted that “the shutdown could soon feasibly become the longest on record, though markets remain largely unperturbed.” He added that “public frustration is expected to build this week as food benefits for lower-income families are paused, domestic travel disruptions increase, and new enrolments for Affordable Care Act plans become increasingly problematic.”
After April’s steep declines sparked by former US President Donald Trump’s aggressive trade tariffs, global markets have largely rebounded. Wall Street’s three major indices, alongside several other benchmarks, have reached record highs, fuelled by expectations — and subsequent realisations — of US interest rate cuts and an ongoing race to capitalise on artificial intelligence investments.
These developments have driven valuations of major technology firms to extraordinary levels, with chipmaker Nvidia last week becoming the first company to surpass a $5 trillion valuation.
Following Wall Street’s rally on Friday, most Asian markets tracked those gains at the start of the new trading week. Hong Kong, Singapore, Wellington, and Taipei all posted advances, while Seoul climbed by more than one percent to a record high amid signs of improved diplomatic relations between South Korea and China.
Conversely, there were declines in Shanghai, Sydney, and Manila, while Tokyo remained closed for a public holiday.
Investors also monitored potential new developments in China–US trade relations after Donald Trump and Chinese President Xi Jinping met last week, agreeing to ease restrictions on China’s rare earth exports and lower certain US tariffs. Nevertheless, US Treasury Secretary Scott Bessent cautioned on Sunday that Washington might reintroduce higher levies on China should it move to block rare earth exports in future.
In commodities, oil prices edged higher after the OPEC+ alliance confirmed plans to increase output again in December, while pausing production during the first quarter of 2026. Gold prices hovered near $4,000, following China’s decision to remove a tax incentive for purchasing the metal. The precious metal has slipped from its 20 October record above $4,381, as investors took profits after a remarkable 60 percent surge since the start of the year.
At around 02:30 GMT, key figures were as follows:
Hong Kong – Hang Seng Index: up 0.5% at 26,035.61
Shanghai – Composite: down 0.4% at 3,939.47
Tokyo – Nikkei 225: closed for a holiday
Euro/dollar: up at $1.1528 from $1.1527 on Friday
Pound/dollar: down at $1.3136 from $1.3139
Dollar/yen: down at ¥154.10 from ¥154.11
Euro/pound: up at 87.76 from 87.74 pence
West Texas Intermediate: up 0.3% at $61.18 per barrel
Brent North Sea Crude: up 0.3% at $64.99 per barrel
New York – Dow Jones Industrial Average: up 0.1% at 47,562.87 (close)
London – FTSE 100: down 0.4% at 9,717.25 (close)