Asia-Pacific markets traded higher on Monday, rebounding after last week’s declines driven by artificial intelligence valuation concerns. Investors also reacted to October inflation data from China, which came in above expectations.
- China Inflation: Headline consumer inflation rose 0.2% year-on-year, versus economists’ expectation of zero growth. Wholesale inflation declined 2.1%, slightly softer than the expected 2.2% drop.
Regional Market Performance
- South Korea:
- Kospi climbed 3.02% to 4,073.24, led by banks and insurance stocks.
- Kosdaq rose 1.32% to 888.35.
- Heavyweights Samsung Electronics and SK Hynix gained 2.76% and 4.48%, respectively.
- SK Inc, the holding company of SK Group, jumped 9.29%, while GS Holdings surged 11.79%.
- Japan:
- Nikkei 225 advanced 1.26% to 50,911.76.
- Topix rose 0.56% to 3,317.42.
- 10-year JGB yields inched up to 1.7%, the highest since October.
- Bank of Japan minutes suggested a possible near-term rate hike, noting that “conditions for taking a further step toward normalization of the policy interest rate have almost been met,” while cautioning that the underlying inflation rate must also be considered.
- Hong Kong & China:
- Hang Seng Index climbed 1.54%.
- CSI 300 gained 0.17%.
- Australia:
- S&P/ASX 200 rose 0.75% to 8,835.9.
- India:
- Nifty 50 added 0.54%, while Sensex gained 0.52%.
- Lenskart made a muted IPO debut, rising just 1.36% from its IPO price of ₹402.
- United States:
- Nasdaq Composite continued to fall, but Dow Jones Industrial Average and S&P 500 edged higher after Senate Minority Leader Chuck Schumer proposed a plan to end the U.S. government shutdown.
- Consumer sentiment is near record lows, according to the University of Michigan, and layoff announcements in October reached the highest level for the month in 22 years, per Challenger, Gray & Christmas.
Overall, the Asia-Pacific recovery reflects easing fears over AI-driven market volatility and positive regional economic cues, though global economic uncertainty remains.