Asia-Pacific markets rallied Monday, driven by investor optimism as they anticipated the inauguration of President-elect Donald Trump and looked for insights into the policy direction of the new U.S. administration. Key indices across the region delivered notable gains, buoyed by strong performances in consumer cyclical and health-care sectors.
Hong Kong’s Hang Seng Index reached its highest point since the end of December before trimming gains slightly, closing 1.76% higher, as consumer-centric and health-care stocks outperformed. Mainland China’s CSI 300 gained 0.45%, closing at 3,829.68, as the People’s Bank of China kept its benchmark lending rates steady. The one-year loan prime rate remained at 3.1%, and the five-year rate was held at 3.6%, fostering modest strengthening of the yuan in both offshore and onshore markets.
In Japan, the Nikkei 225 climbed 1.17%, closing at 38,902.50, with its broader counterpart, the Topix, advancing 1.19%. South Korea’s Kospi dipped 0.14%, while the Kosdaq gained 0.41%. Australia’s S&P/ASX 200 added 0.45%, continuing its upward trajectory.
Malaysia posted an impressive export surge of 16.9% year-on-year in December, far exceeding expectations and reflecting robust demand compared to November’s 4.1% growth. Imports also outperformed forecasts, rising by 11.9%. This data, coupled with expectations of the central bank maintaining its policy rate at 3% this week, signals a steady economic outlook for the country.
Investors are keeping a close watch on upcoming central bank meetings. Malaysia, Japan, and Singapore will convene in the coming days to address monetary policy, with the Bank of Japan signalling a possible rate hike under Governor Kazuo Ueda.
The Asia-Pacific momentum follows a positive week on Wall Street, where the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all delivered solid gains. Meanwhile, markets in the U.S. are closed Monday in observance of a public holiday.
Asia-Pacific markets showed strong performances to start the week, driven by investor optimism and key economic signals from China, Japan, and Malaysia. This optimism reflects a region-wide anticipation of economic stability and potential policy clarity as global leaders adjust to a shifting geopolitical and financial landscape.
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