Shares in Asia experienced notable gains on Monday, led by South Korea’s market, which benefited significantly from a surge in technology-related stocks. This uptrend in Asian markets coincided with an increase in crude oil prices, prompted by the United Arab Emirates hosting a major oil summit and the recent announcement from the OPEC+ group regarding a halt on planned production increases for early 2026.
The U.S. benchmark crude oil saw an increase of 43 cents, reaching $61.41 per barrel, while Brent crude, the international benchmark, added 46 cents to settle at $65.23 per barrel. Notably, Japan’s markets were closed for a holiday, leaving the spotlight on South Korea’s performance.
In South Korea, the Kospi index recorded a remarkable jump of 2.8%, closing at 4,221.87, marking yet another record high. This surge was fueled by significant gains in tech stocks. Shares of computer chip manufacturer SK Hynix soared by 11%, buoyed by recent collaborations with Nvidia aimed at enhancing South Korea’s artificial intelligence infrastructure. Additionally, Samsung Electronics, the largest company in the nation, saw its shares increase by 3.4%.
Meanwhile, Chinese markets had a more muted response. The Hang Seng index in Hong Kong rose by 1.1% to reach 26,183.60. However, gains in technology sectors were offset by declines in gold-related businesses, such as Chow Tai Food Jewellery Group, which saw an 8.7% drop in shares following the Chinese government’s reduction of tax rebates on gold sales. This decision has contributed to slowing demand for gold, which has previously been a safe haven for investors amid uncertainties.
Despite this dip, gold prices increased by nearly 0.8%, reaching $4,028.00 per ounce. While this is an uptick, it remains below its recent record levels of nearly $4,400. A private-sector manufacturing index, the RatingDog China General Manufacturing PMI, revealed a slowdown in China’s manufacturing sector, dropping to 50.6 in October from 51.2 in September. The official PMI reading mirrored these concerns, sliding to 49 in September from 49.8.
The Shanghai Composite index gained 0.5%, ending at 3,973.10, and Taiwan’s benchmark Taiex rose by 0.4%. In the U.S., futures indicated a modest rise for major indices, with the Dow Jones Industrial Average up 0.2% and the S&P 500 gaining 0.3%. On the prior Friday, Amazon’s significant profit report led the U.S. stock market higher, with its stock up 9.6%. The S&P 500 itself finished the week at 6,840.20, nearing its all-time high.
Additionally, President Donald Trump’s recent comments on Taiwan, assuring that Chinese leader Xi Jinping would not take action against the island during his presidency, did not significantly impact market sentiment. Nonetheless, there remains skepticism regarding the efficacy of Trump’s trade truce with China.
In foreign exchange markets early Monday, the U.S. dollar strengthened against the Japanese yen, rising to 154.20 yen from 153.05. The euro also saw a gain, increasing to $1.1538 from $1.1533. Investors continue to monitor economic indicators and geopolitical developments closely as markets navigate through a complex landscape of growth opportunities and inherent risks.
