Shares in Asia moved mostly upward on Monday, buoyed by gains in the U.S. stock market, particularly led by Amazon, which capped another successful week and month for Wall Street. Futures for the U.S. markets, along with oil prices, recorded increases, although Japan’s stock exchanges remained closed for a holiday.
In South Korea, the Kospi index surged by 2.6%, reaching 4,212.20, with shares of tech giant Samsung Electronics rising 3.4%. Meanwhile, Chinese markets displayed a more subdued performance. The Hang Seng index in Hong Kong recorded a modest gain of 0.4%, closing at 26,017.76.
Recent data indicated a slowdown in factory activity within China, as evidenced by the RatingDog China General Manufacturing PMI, which dipped to 50.6 in October from 51.2 in September. Notably, a PMI reading below 50 suggests contraction, and the official measure from the National Bureau of Statistics reflected a similar trend, decreasing to 49 from 49.8.
On the mainland, the Shanghai Composite index advanced slightly, by 0.1%, to 3,958.21, while Taiwan’s benchmark index also saw an increase of 0.1%. Market reactions were muted following President Donald Trump’s comments indicating that Chinese President Xi Jinping had assured him that no military action would be taken regarding Taiwan during his presidency. The topic, however, was absent from discussions between Trump and Xi during a meeting in South Korea focused on U.S.-China trade relations.
State-side, futures for the Dow Jones Industrial Average rose by 0.2%, with the S&P 500 up 0.3%. In the previous session, Amazon was a standout performer, skyrocketing 9.6% after announcing a profit significantly exceeding analysts’ forecasts. This contributed to the S&P 500’s increase of 0.3%, pushing it closer to its all-time high established earlier in the week. The index finished at 6,840.20, marking its third consecutive winning week and the sixth consecutive winning month, representing the longest stretch of monthly gains since 2021. The Dow also experienced a slight uptick of 0.1%, reaching 47,562.87, while the Nasdaq composite gained 0.6% to close at 23,724.96.
Amazon’s market influence, with a valuation of approximately $2.4 trillion, plays a crucial role in the S&P 500’s performance. Without its strong performance, the index might have seen declines. In contrast, Apple’s stock saw a slight dip of 0.4% despite reporting better-than-expected profits. CEO Tim Cook credited the company’s growth to strong sales of iPhones and services, including the app store. Companies across the market now face increasing pressure to demonstrate significant profit growth to validate the considerable increases in stock prices since April, particularly as investor concerns grow around the overall valuation of the U.S. stock market.
On the commodities front, U.S. benchmark crude oil prices rose by 23 cents to $61.21 per barrel, and the international Brent crude increased by 26 cents to $65.03 per barrel. Currency movements indicated the U.S. dollar strengthened against the Japanese yen, climbing to 154.06 from 153.48, while the euro slipped slightly to $1.1532 from $1.1537.
