Asian Markets Mixed Following Last Week’s Rebound; Japan’s Five-Day Rally Ends, Hong Kong Shares Climb
In today’s trading, Asian markets mostly advanced, building on last week’s strong performance, as traders awaited a pivotal meeting of central chiefs, where Federal Reserve Chair Jerome Powell is set to deliver a highly anticipated speech.
Investor sentiment has improved after recent data suggested that earlier fears of a US recession might have been overstated. This renewed confidence helped lift most Asian markets to gains.
Hong Kong shares rallied on Monday, fueled by optimism that the US economy might avoid a recession and signs of government support lifting Shanghai-listed banks to new highs.
The Hang Seng Index gained 1.06%, reaching 17,614.62, led by strong performance from banking stocks and gold miners benefiting from elevated bullion prices.
Government-backed initiatives boosted banking stocks in Shanghai, driving the Shanghai Composite index up by 0.53%, while the blue-chip CSI300 index advanced 0.41%. Agriculture Bank of China shares soared to record levels, with China Construction Bank and Industrial and Commercial Bank of China also posting significant gains.
Meanwhile, Japan’s five-day winning streak ended as profit-taking and a strengthened yen weighed on domestic stocks. The yen appreciated beyond 146 per dollar, reaching its stronger level in nearly two weeks, as the US dollar weakened in response to a more dovish outlook on Federal Reserve monetary policy. Tokyo remained flat with the Nikkei 225 at 38,047.17.
Oil prices remained steady after last week’s decline, driven by concerns over sluggish demand due to China’s struggling economic recovery.
Investors are also closely monitoring negotiations for a potential ceasefire between Israel and Hamas in Gaza, amid fears that the conflict could escalate into a broader war in the oil-rich Middle East.
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