Stocks rose across Asian markets on Monday, buoyed by optimism following another artificial intelligence–driven rally on Wall Street and easing tensions between China and the United States. Investors returned from the weekend with renewed confidence after a positive end to October that featured a U.S. Federal Reserve interest rate cut, improving China–U.S. relations, and strong earnings from tech giants such as Amazon.
Market sentiment was also supported by expectations for key U.S. jobs data later this week. However, the ongoing government shutdown in Washington — with Democrats and Republicans still deadlocked over a reopening deal — could delay the release of those figures. While the shutdown has yet to significantly rattle financial markets, analysts warned of potential ripple effects on American households.
Chris Weston of Pepperstone noted that the shutdown could soon feasibly become the longest on record, even though markets remain largely unperturbed. He cautioned that public frustration may build as food benefits for low-income families are paused, domestic travel faces disruptions, and enrollments under the Affordable Care Act become increasingly difficult.
Following a sharp slump in April triggered by U.S. President Donald Trump’s tariff measures, global markets have since rebounded strongly. Wall Street’s three major indexes, along with several global bourses, hit record highs in recent weeks. The rally has been fueled by optimism over the Fed’s rate cuts and a relentless surge in artificial intelligence investments, which recently propelled chipmaker Nvidia to become the world’s first $5 trillion company.
Asian markets mirrored Wall Street’s upbeat tone on Monday. Hong Kong’s Hang Seng Index climbed 1.0 percent to 26,156.81, while Shanghai’s Composite Index rose 0.6 percent to 3,976.52 at the close. Singapore, Sydney, Wellington, Bangkok, and Taipei also posted gains, while Seoul surged 2.8 percent to a record high amid improving diplomatic ties between South Korea and China. However, Mumbai and Manila recorded minor losses, and Tokyo’s market was closed for a holiday.
Investors are keeping a close eye on developments following last week’s meeting between President Trump and Chinese President Xi Jinping, where both leaders agreed to ease China’s rare earth export curbs and reduce certain U.S. tariffs. Nevertheless, U.S. Treasury Secretary Scott Bessent warned that Washington could reimpose higher tariffs if Beijing fails to uphold its end of the agreement.
Oil prices inched higher after the OPEC+ alliance announced plans to increase output in December but pause production during the first quarter of 2026. West Texas Intermediate rose 0.8 percent to $61.44 per barrel, while Brent crude climbed 0.8 percent to $65.26.
Gold prices steadied around $4,000 as China scrapped a tax incentive for gold purchases. The precious metal has retreated from its October 20 record high of $4,381, following a 60 percent surge earlier this year.
In currency markets at around 0705 GMT, the euro traded at $1.1540 against the dollar, the pound stood at $1.3147, and the dollar was quoted at 154.20 yen. On Wall Street, the Dow Jones Industrial Average rose 0.1 percent to close at 47,562.87, while London’s FTSE 100 fell 0.4 percent to 9,717.25.