Asian markets opened Monday on a firm footing, buoyed by mounting hopes that a bruising US government shutdown may finally be resolved.
The Senate moved closer to a bipartisan deal after majority leader John Thune signaled positive progress over the weekend.
This lift in risk sentiment rippled across the region, with investors eager to shake off last week’s technology valuation concerns.
Meanwhile, China’s consumer prices returned to growth in October, a pivotal moment after months of deflation worries.
This inflation rebound, though modest at 0.2% year-on-year, offered reassurance that Beijing’s stimulus measures are starting to gain traction.
Asian bourses seized on the optimism, with several major indices posting sharp gains as traders rotated back into beaten-down segments.
Japan’s Nikkei surges while Kospi climbs to a multi-session high
Japan’s stock market kicked off the week with serious momentum.
The Nikkei 225 jumped 490 points, or about 0.98%, to 50,766 on Monday, extending Friday’s rebound and riding the wave of renewed optimism sweeping across Asia.
Investors are breathing a little easier after the recent US shutdown worries eased, and markets are bouncing back from last week’s AI-driven tech selloff.
Japan’s export-heavy sectors are leading the charge, a sign that traders are feeling more confident about global growth picking up again.
Over in South Korea, things looked even hotter. The Kospi surged 112 points, or 2.8%, to close at 4,065, marking one of its strongest single-day gains in weeks.
After last week’s 4% slump, buyers came roaring back, especially in tech and semiconductor stocks, which tend to benefit when global demand looks set to strengthen.
India’s markets opened the week on a steady note, with the Sensex rising 203 points (0.24%) to 83,419, and the Nifty gaining 59.5 points (0.23%) to 25,552.
Market breadth leaned positive, about 1,538 stocks advanced, 1,029 declined, and 222 stayed unchanged.
Hang Seng holds gains; Shanghai and Shenzhen mixed
Hong Kong’s stock market started the week on a positive note.
The Hang Seng Index climbed 167 points, or 0.64%, to 26,409 in early trading, as investors welcomed upbeat China CPI data and relief around the US government shutdown.
The steady gains show a cautious but growing optimism about China’s demand recovery heading into the final stretch of the year.
Over on the mainland, the Shanghai Composite barely budged, adding just 2 points as traders showed some hesitation despite the encouraging inflation numbers.
Meanwhile, the Shenzhen Index slipped 31 points to 13,372, likely reflecting a bit of sector rotation rather than any real weakness.
Still, the bigger picture looks solid. The CSI 300, China’s key blue-chip index, continues to hold firm and is now testing levels not seen since early 2022.
For now, all eyes are on Beijing’s upcoming policy announcements.
Investors are waiting for details on the new five-year plan and any signs of fresh fiscal or monetary support, both of which could set the tone for Chinese markets through the rest of the week.
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