Asian Markets Rise After U.S. Stocks' Broad Rally

BANGKOK (AP) — Shares in Asia saw mostly positive movements on Monday as a rally on Wall Street helped to mitigate some of the losses sustained during a challenging week for U.S. markets. The S&P 500 ended the week down 2%; however, the recent gains brought some optimism.

In the wake of this rally, U.S. futures and oil prices also saw an uptick, suggesting continued momentum in the markets.

A significant development that helped to ease market concerns was the passing of a budget deal by U.S. lawmakers, which averted a potential government shutdown just before Christmas.

Asian Market Highlights

In Japan, the Nikkei 225 index rose by 0.9%, closing at 39,039.18. The U.S. dollar appreciated slightly against the yen, trading at 156.53.

Speculation surrounding a possible merger between the major Japanese automakers, Honda and Nissan, was also in the spotlight. Both companies were expected to hold a news conference later Monday regarding this matter. Following last week’s news of potential merger talks, Honda’s shares increased by 0.8%, while Nissan’s shares dropped by 0.9%.

In other parts of Asia, Hong Kong’s Hang Seng index climbed by 0.7% to reach 19,857.98, and the Shanghai Composite increased by 0.2%. Meanwhile, Australia’s S&P/ASX 500 surged by 1.4%, closing at 8,175.80.

South Korea’s Kospi index gained 1.5%, reaching 2,440.62, and Taiwan’s Taiex increased by 2.5%, with significant contributions from TSMC, the largest global chip manufacturer, whose shares rose by 3.9%. Additionally, Hon Hai Precision Industry, known for its operations with major automakers like Nissan, experienced a rise of 3.8%.

In Thailand, the SET index edged up by 0.1%.

U.S. Market Performance

The U.S. stock market, notably the S&P 500, rallied by 1.1% on Friday, closing at 5,930.85. The Dow Jones Industrial Average saw a rise of 1.2%, closing at 42,840.26, while the Nasdaq composite gained 1%, ending at 19,572.60. Approximately 90% of the stocks within the S&P 500 enjoyed a rise during this period, demonstrating a healthy market rebound.

Leading figures in the tech sector, such as Nvidia, were key players in this upward trend, as a report indicated a decrease in the inflation measure that the Federal Reserve heavily favors. This drop was slightly lower than what most economists had anticipated, providing a boost for investors.

Despite encouraging signs, concerns remain regarding inflation and the Federal Reserve’s interest rate policy. Fed Chair Jerome Powell has indicated that the central bank might not decrease interest rates as aggressively in the coming year as previously thought, raising doubts among traders who had been hoping for more extensive cuts.

Market analysts have suggested that stock prices may be susceptible to corrections due to having risen significantly over the past year, with recent events serving as reminders that economic conditions could sway unpredictably.

Market Summary

As the day progressed Monday, U.S. benchmark crude oil prices increased by 40 cents, reaching $69.86 per barrel. Similarly, Brent crude, the international standard, was up by 36 cents, reaching $73.30. The euro also appreciated slightly against the dollar, trading at $1.0441.

Overall, the sentiment in Asian markets reflects cautious optimism, influenced by developments from the U.S. and ongoing discussions in important industries such as automotive and technology.

Asia, Stocks, Market