India’s stock market surged to record highs, leading gains across Asian markets on Monday. This rally coincided with the release of exit polls indicating a likely victory for Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) in the recent elections, positioning them for a rare third consecutive term in power.
The Nifty 50 index and the S&P BSE Sensex in India both saw notable increases, each rising by 3%. These gains were fueled by optimistic projections from exit polls conducted over the weekend.
Meanwhile, in China, a private survey revealed encouraging news for the manufacturing sector. The Caixin survey reported a rise in China’s manufacturing Purchasing Managers’ Index (PMI) to 51.7 in May, up from 51.4 the previous month. This marked the sector’s fastest pace of expansion since June 2022 and surpassed expectations outlined in a Reuters poll, which had forecasted a figure of 51.5.
This positive sentiment contrasted with official data released on Friday, which unexpectedly showed a contraction in China’s manufacturing sector for May.
Across other Asian markets, Hong Kong’s Hang Seng index climbed by 1.77%, while mainland China’s CSI 300 edged 0.25% higher to reach 3,588.75. In Japan, the Nikkei 225 index closed 1.13% higher at 38,923.03, with the broader Topix index also posting gains, ending 0.9% higher at 2,798.07.
Australia’s S&P/ASX 200 saw an increase of 0.77%, closing at 7,761.00. South Korea’s Kospi index rose by 1.74%, concluding at 2,682.52, while the smaller-cap Kosdaq index was up by 0.56% at 844.72.
Looking ahead, Wall Street futures remained relatively stable on the cusp of the first trading day of June. Dow Jones Industrial Average futures were up by 25 points, or less than 0.1%, while S&P 500 futures remained flat and Nasdaq 100 futures dipped slightly by 0.1%.
These developments unfolded against the backdrop of notable performance in the U.S. markets, with the Nasdaq Composite registering a significant 6.9% gain in May, marking its best month since November 2023.
