Asian equities experienced gains during light trading on Monday as Japanese markets were closed for the Culture Day holiday. Despite ongoing tensions in the Middle East and apprehension surrounding the upcoming U.S. presidential election and the Federal Reserve's interest rate decision, regional markets demonstrated impressive resilience.
The U.S. dollar weakened following softer-than-anticipated jobs data, which suggested a cooling labor market. Meanwhile, gold prices edged up amid Iran and Azerbaijan's two-day naval exercises in the Caspian Sea. Iran’s Supreme Leader, Ayatollah Ali Khamenei, explicitly warned that Israel and the United States could expect a "teeth-breaking response" due to their actions against the country. The Wall Street Journal reported that Iran is preparing for a multifaceted assault on Israel, potentially utilizing high-powered missile warheads.
In the energy sector, both WTI and Brent crude oil futures surged approximately 2% in Asian trading after OPEC+ decided to delay its planned production increase for December by a month.
China's Shanghai Composite Index advanced by 1.17%, reaching 3,310.21, as investors anticipated the National People's Congress meeting that is expected to introduce a new fiscal stimulus package focusing on economic stabilization via local government debt swaps and bank capital injections. Hong Kong's Hang Seng Index modestly increased by 0.30% to 20,567.52, driven by optimism for new policy measures from Beijing aimed at bolstering consumer spending.
In South Korea, the stock market recorded robust gains after the opposition Democratic Party leader backed the government’s decision to abandon a scheme taxing stock investment profits. The Kospi Index soared by 1.83%, concluding at 2,588.97. Among major companies, Samsung Electronics saw a 0.7% rise, SK Hynix surged 6.5%, and LG Energy Solution rose by 3.3%.
Australian markets also made progress, primarily driven by the banking and healthcare sectors, ahead of the Reserve Bank of Australia's forthcoming policy meeting. The key S&P/ASX 200 Index climbed by 0.56% to 8,164.60, while the broader All Ordinaries Index increased by 0.51% to 8,422.80. Westpac saw a 0.9% gain following the revelation that it would extend its share buyback program by an additional A$1 billion. Conversely, Mineral Resources plummeted by 9.6% following the announcement that Managing Director Chris Ellison will resign after the board discovered misuse of company resources for personal benefit.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX-50 Index rose by 0.25%, closing at 12,590.60.
In the United States, stock markets concluded the previous week on a high note despite underwhelming employment figures, thanks largely to positive earnings announcements from Amazon and Intel. Specifically, the U.S. economy added a meager 12,000 jobs in October—the lowest since December 2020—compared to a revised 223,000 in September, largely affected by hurricanes and labor strikes. However, the unemployment rate remained steady at 4.1%, aligning with expectations. The tech-centric Nasdaq Composite gained 0.8%, the Dow increased by 0.7%, and the S&P 500 rose by 0.4%.
