Asian stock markets surged on Monday, buoyed by gains on Wall Street from the previous week. Analysts noted that investors were largely optimistic about President-elect Donald Trump’s nomination of billionaire investor Scott Bessent for the role of Treasury secretary, interpreting it as a favorable market move.
Bitcoin experienced a slight dip, and oil prices also retreated, while U.S. futures pointed to a positive open for Wall Street.
Japan’s Nikkei 225 index advanced 1.4%, closing at 38,815.31, while Seoul’s Kospi gained 1.4%, ending at 2,535.03. In Australia, the S&P/ASX 200 added 0.6%, settling at 8,444.40.
Meanwhile, Chinese markets continued to face downward pressure, with the Shanghai Composite index slipping 0.4% to 3,255.39 and the Hang Seng index in Hong Kong falling by 0.5%, to 19,131.82. China’s central bank kept the interest rate on the one-year medium-term lending facility at a stable 2%.
Technology stocks saw significant declines, with Meituan, an online shopping platform, falling by 4.3%, and multimedia giant Tencent dropping 1.3%.
Elsewhere in Asia, Taiwan’s Taiex gained 0.4%, while India’s Sensex rose 1.5%, and Thailand’s SET increased by 0.2%.
Looking ahead, this week will bring key economic data, including an update on consumer sentiment from The Conference Board on Tuesday and inflation figures on Wednesday with the release of the October personal consumption expenditures (PCE) index. As the Fed’s preferred inflation measure, this PCE report will be critical ahead of next month’s Federal Reserve meeting.
On Friday, U.S. stocks wrapped up the week with another rally, marking the fifth consecutive day of gains. The Dow Jones Industrial Average closed at a new record high of 44,296.51, up 1%. The S&P 500 rose by 0.3%, while the Nasdaq composite gained 0.2%. The Russell 2000 index jumped 1.8%.
The market’s recent volatility has been tied to shifts in investor sentiment following the U.S. presidential election. Trump’s cabinet picks, including his proposed Treasury Secretary, have been central to market fluctuations, with Bessent’s nomination seen as potentially moderating expectations for aggressive fiscal policies.
Bessent, 62, is a seasoned hedge fund manager and founder of Key Square Capital Management, with ties to Soros Fund Management. If confirmed, he would become the first openly gay Treasury secretary. His appointment is perceived as signaling a more measured approach to economic policy, especially regarding tariffs and fiscal strategies, which could provide stability amid concerns over abrupt changes, according to Stephen Innex of SPI Asset Management.
While the stock market showed broad-based gains, technology stocks weighed on overall performance. Nvidia, a leader in the artificial intelligence sector, saw its shares fall 3.2%, reflecting concerns over its high valuation. Intuit, the maker of TurboTax, dropped 5.7% after issuing a disappointing earnings forecast. Meta Platforms, Facebook’s parent company, lost 0.7%, after the Supreme Court ruled that a multibillion-dollar class action lawsuit against it could proceed.
In cryptocurrency, Bitcoin remained around $98,000, a level more than double its value from the beginning of the year. The cryptocurrency briefly surpassed the $99,000 mark last Thursday, continuing its dramatic rise in 2024.
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