Asian equities gained momentum, taking cues from Wall Street’s positive performance. This came as US Treasuries paused a selloff that had driven 10-year yields up to 4.5%. Traders remain attentive to developments surrounding President-elect Donald Trump’s administration plans, which are expected to influence markets further.
Stock indexes in Japan, South Korea, and Australia posted gains, while Hong Kong futures advanced. On Wall Street, the Nasdaq 100 rebounded after its longest losing streak since January. Tesla Inc. rose by 5.6% following reports that Trump’s transition team intends to prioritise federal policies supporting fully autonomous vehicles. However, Nvidia Corp., which is set to release its earnings this week, experienced a slight decline.
US Treasuries reversed earlier losses on Monday, with gains noted across the yield curve. Similarly, Australia’s 10-year notes saw an uptick during early trading on Tuesday. Market participants appear to be assessing the economic implications of Trump’s policy directions and the possibility of the Federal Reserve slowing its pace of rate cuts. Chris Larkin of E*Trade highlighted the lighter economic calendar this week, pointing to Nvidia’s earnings as a potential market driver.
The S&P 500 rose 0.4%, and the Nasdaq 100 climbed 0.7%, while the Bloomberg Dollar Spot Index dropped 0.4%. Bitcoin surged past $91,000, reflecting ongoing interest in cryptocurrencies. Investors in Asia are closely watching whether Monday’s equity rebound in China and Hong Kong will hold, given the broader context of stimulus reassessments and corporate valuation policies.
Despite Monday’s market optimism, caution remains among major brokerages like Morgan Stanley and Goldman Sachs, which cite deflationary pressures and geopolitical risks as challenges for Chinese stocks. Meanwhile, oil prices dipped slightly after Monday’s surge, which had been fuelled by geopolitical tensions, including the US approving Ukraine’s use of long-range missiles. Gold also recorded its highest gains since August, with predictions of reaching $3,000 an ounce next year, bolstered by renewed investor confidence.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
