Asian Stocks Green, Year-End Rally Starting to Ignite?
Asian stocks opened higher, following Friday's rise in US stocks, which fueled hopes for a year-end rally. Many investors are starting to re-enter the market after a market correction.
The MSCI Asia-Pacific stock index rose 0.5%, with the technology sector leading the gains. The index had previously recorded a 1.9% weekly decline on Friday, its first decline in four weeks. On Monday morning, US stock futures also rose in early Asian trading.
Market optimism strengthened after dip buying at the end of last week helped the market recover from pressure triggered by doubts about the AI hype and the extent of the Fed's easing opportunities. US stocks rose 0.9% on Friday, for the second straight day, and even managed to erase weekly losses as trading volume surged due to quarterly options and futures expirations.
In Asia, attention is focused on China, which will release its 1-year and 5-year loan prime rates (LPR) today. Banks are expected to keep lending rates unchanged for the seventh month, amid expectations that China's central bank could ease policy next year. Eric Zhu of Bloomberg Economics believes the next rate cut could come early next year, pushing lending rates lower.
Meanwhile, other assets are also moving: oil rose as the US tightened its blockade on Venezuelan oil, Bitcoin rose about 1%, and silver hit another record. Market data this morning shows: S&P 500 futures rose 0.2% (as of 9:26 a.m. Tokyo time), Hang Seng futures rose 0.5%, Japan's Topix rose 0.8%, and Australia's ASX 200 rose 0.7%. WTI rose 0.6% to $56.88 per barrel, and spot gold rose 0.5% to $4,362.53 per ounce. (asd)
Source: Newsmaker.id
