Asian Markets Rise Amid Big Tech Gains, Political Developments, and Central Bank Decisions
Sophia Cruz•Tuesday, October 29, 2024•2 min read
In today’s trading, Asian shares mostly advanced after U.S. stocks closed broadly higher, with gains in Big Tech offsetting declines in oil and gas stocks. Japan’sNikkei 225 rose 0.5% in early trading to 38,819.51, while Australia’s S&P/ASX 200 climbed 0.6% to 8,270.20. South Korea’s Kospi dipped slightly, down 0.2% to 2,606.70, and Hong Kong’s Hang Seng edged up 0.4% to 20,690.07. Meanwhile, China’s Shanghai Composite slipped 0.4% to 3,308.46.
In Japan, the government reported that unemployment fell to 2.4% last month, reflecting a 0.1 percentage point improvement and marking the second consecutive month of recovery. A persistently weak yen continues to bolster Japanese stocks, as the U.S. dollar eased to 152.96 yen from 153.23 yen, while the euro edged down to $1.0815 from $1.0817.
Japanese shares built on the previous day’s gains, supported by lower oil prices and a weaker yen, despite political uncertainties following Sunday’s general election, which left the ruling coalition without a majority. Investors are also looking ahead to the Bank of Japan’s upcoming rate decision, with expectations for the central bank to hold steady following two rate hikes earlier this year.
“While the Bank of Japan’s policy won’t be directly influenced by the current political negotiations to form a coalition, the next government may need to increase fiscal spending,” commented Alvin Tan of RBC Capital Markets. “This could, in turn, create additional pressure on the Bank of Japan to slow down policy tightening.”
Attention is also shifting to a major political meeting in Beijing next week, where investors are anticipating further details on a planned stimulus package to support China’s economy. Weighed down by a debt crisis in the property sector and a sluggish post-pandemic recovery, China’s economic momentum has been modest.
In conclusion, as Asian markets navigate a landscape shaped by global influences, domestic economic policies, and political developments, investors remain cautiously optimistic. The coming days will be critical as central banks and governments unveil their strategies to sustain growth amid ongoing challenges.
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.