On Monday, Asian markets experienced an upward trend, following a week in which concerns regarding artificial intelligence valuations had led to declines across the region. Investors in Asia are analyzing the October inflation data from China released over the weekend, which exceeded expectations. Headline consumer inflation registered at 0.2% year on year, contrasting with the zero growth anticipated by economists surveyed by Reuters. Wholesale inflation experienced a less pronounced decrease of 2.1% year on year, compared to the anticipated 2.2% reduction. South Korea’s Kospi experienced a notable increase of 3.02%, concluding at 4,073.24, driven primarily by gains in the banking and insurance sectors. Meanwhile, the small-cap Kosdaq rose by 1.32%, finishing at 888.35. Prominent constituents of the Kospi index, such as Samsung Electronics and SK Hynix, recorded increases of 2.76% and 4.48%, respectively.
Other notable gainers included SK Inc, the holding company of South Korea’s second largest chaebol — or family-run conglomerate — SK Group, which experienced an increase of approximately 9.29%. GS Holdings, a significant player in the energy, retail, and construction sectors and recognized as one of the nation’s largest chaebols, experienced an increase of 11.79%. Japan’s Nikkei 225 advanced 1.26% and finished at 50,911.76, while the broad-based Topix was up 0.56% to 3,317.42. Yields on 10-year Japanese government bonds rose to a peak of 1.7%, marking the highest level since October. On Monday, minutes from the Bank of Japan’s October meeting indicated a greater inclination towards a near-term rate hike, stating that “it is likely that conditions for taking a further step toward the normalization of the policy interest rate have almost been met.”
However, the BOJ also indicated that there are additional factors to take into account, including the necessity to assess the degree to which the “underlying inflation rate has become entrenched.” The Hang Seng index in Hong Kong participated in the recovery rally, increasing by 1.54%, whereas the CSI 300 in mainland China saw a modest gain of 0.17%. Australia’s S&P/ASX 200 experienced an increase of 0.75%, concluding at 8,835.9. India’s Nifty 50 increased by 0.54%, whereas the Sensex index rose by 0.52%. On Monday, Softbank-backed Lenskart experienced a subdued debut, with the stock increasing merely 1.36% from its IPO price of 402 rupees.
On Friday in the U.S., the Nasdaq Composite experienced further declines, while the Dow Jones Industrial Average and S&P 500 managed to move into positive territory following Senate Minority Leader Chuck Schumer’s proposal to Republicans aimed at resolving the unprecedented government shutdown. A survey conducted by the University of Michigan disclosed on Friday that consumer sentiment in the nation has approached its historically lowest point. The data arrives merely a day following the report from Challenger, Gray & Christmas, which indicated that layoff announcements in October reached their highest level for the month in 22 years.