Markets Climb as Focus Shifts to U.S. Elections and Fed Decisions

Asia-Pacific markets rose as investors anticipated key events, including the U.S. elections and Fed decisions, while commodity prices surged.

Asian stock markets saw a notable uptick on Monday, driven by investor optimism ahead of a pivotal week filled with key economic events, including the upcoming U.S. presidential election and a crucial monetary policy meeting by the Federal Reserve. Meanwhile, China’s parliamentary meeting commenced today and is expected to conclude on Friday with potential announcements of new fiscal support measures. Market participants are keenly awaiting China’s October trade data, set to be released later this week, following disappointing export and import figures from September.

South Korea’s Kospi index surged by 1.51% in the Asia-Pacific region, and the Kosdaq soared by 3.16%, reflecting positive sentiment despite Japanese markets being closed for a holiday. Hong Kong’s Hang Seng index slightly increased by 0.17%, while mainland China’s CSI 300 rose by 0.49%. Australia’s S&P/ASX 200 climbed 0.56%, closing at 8,164.6, demonstrating resilience amidst global market fluctuations.

Economic Indicators

The latest U.S. labor market data shows that average hourly earnings increased by 0.4% month-over-month, exceeding expectations of a 0.3% rise. However, the non-farm employment change fell short, adding only 12,000 jobs compared to the expected 106,000. The unemployment rate remained steady at 4.1%, aligning with projections.

Markets Climb as Focus Shifts to U.S. Elections and Fed Decisions

Forecasts suggest that South Korea will release consumer inflation figures for October on Tuesday. According to estimates from LSEG, consumer inflation declined for the third consecutive month to 1.4% year-over-year, down from 2.6% in July. Additionally, the Reserve Bank of A survey by Reuters anticipates Australia will maintain its official cash rate at 4.35% during its decision announcement on Tuesday.

Commodity Markets

In commodities, gold traded at $2,748.35 per ounce, with a modest increase of 0.04%, while silver rose by 0.54% to $32.80. Crude oil prices also experienced a rally, with West Texas Intermediate climbing 1.42% to $70.47 per barrel and Brent oil up 1.37% to $74.10 per barrel. This surge came after OPEC+ members postponed a planned output increase, fueling concerns over supply.

Global Markets Snapshot

• Asian Stock Markets:
  • Nikkei: -2.74%
  • Shanghai Composite: +0.63%
  • Hang Seng: +0.17%
  • ASX 200: +0.56%
• Commodity Prices:
  • Gold: $2,748.35 (+0.04%)
  • Silver: $32.80 (+0.54%)
  • Brent Oil: $74.34 (+1.6%)
  • WTI Oil: $70.73 (+1.9%)
• Bond Yields:
  • US 10-year: 4.307%
  • UK 10-year: 4.446%
  • Germany 10-year: 2.405%

Investors are bracing for more economic data, including U.S. factory orders, scheduled for release at 3:00 PM GMT today. With the markets poised for further developments, the coming days will be critical in shaping investor sentiment and market direction in the Asia-Pacific region and beyond.

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