BANGKOK — Asian markets experienced an upswing on Monday, building upon the momentum gained from Wall Street in the previous week. Analysts suggest that the selection of billionaire investor Scott Bessent as the Treasury secretary nominee by President-elect Donald Trump is being perceived positively by investors, viewing it as a market-friendly move.
Both Bitcoin and oil prices saw slight declines, although U.S. futures were on the rise.
In Japan, the Nikkei 225 index increased by 1.4%, reaching 38,815.31, while South Korea’s Kospi also climbed 1.4% to 2,535.03. Meanwhile, the S&P/ASX 200 index in Australia rose 0.6% to 8,444.40.
Conversely, Chinese shares faced a downturn, with the Shanghai Composite index slipping by 0.4% to 3,255.39, while the Hang Seng index in Hong Kong fell by 0.5% to 19,131.82. The People’s Bank of China decided to maintain the one-year medium-term lending facility interest rate at 2%.
The technology sector in China saw significant losses, highlighted by a 4.3% drop in the online retail giant Meituan and a 1.3% decline in video games and multimedia company Tencent. Taiwan’s Taiex managed to gain 0.4%, and India’s Sensex rose by 1.5%. In Bangkok, the SET index saw a modest increase of 0.2%.
This week, economic updates will be announced, notably consumer sentiment data from The Conference Board on Tuesday, followed by critical inflation figures with the release of the personal consumption expenditures (PCE) index for October on Wednesday. The PCE index is favored by the Federal Reserve as a gauge of inflation and this report will precede the Fed’s upcoming meeting next month.
On the previous Friday, Wall Street closed on a high note, marking its fifth consecutive gain, with the Dow Jones Industrial Average achieving another record by increasing 1% to 44,296.51. The S&P 500 rose 0.3% to 5,969.34, while the Nasdaq composite gained 0.2% to 19,003.65. The Russell 2000 index surged by 1.8%.
Market fluctuations have been significant following the U.S. elections in November. Investors are closely monitoring Trump’s selections for Treasury and other significant roles, as these will likely affect economic and financial policies.
Scott Bessent, aged 62, is a hedge fund manager known to have strong ties to Wall Street. He founded Key Square Capital Management and has had a longstanding association with Soros Fund Management since 1991. If he receives Senate confirmation, he would make history as the first openly gay treasury secretary in the United States.
Bessent’s selection is viewed as an indication that President-elect Trump may take a moderate stance regarding tariffs and fiscal strategies. Stephen Innex from SPI Asset Management emphasized that Bessent’s appointment could lead to more nuanced economic policies, addressing concerns about potential abrupt changes.
However, the focus for this week is expected to shift towards inflation data and its implications for interest rates as the Federal Reserve prepares for its next policy meeting. While a majority of stocks within the S&P 500 saw gains, they were tempered by declines in various major tech firms.
Nvidia experienced a notable drop of 3.2%, as its high valuation influences broader market trends significantly. The company has achieved substantial growth, valued at nearly $3.6 trillion, fueled by the rising demand for chips essential in artificial intelligence technology.
Intuit, known for its TurboTax software, fell by 5.7% after it projected quarterly earnings that did not meet analysts’ predictions. Meanwhile, Meta Platforms, the parent company of Facebook, dipped by 0.7% following a Supreme Court ruling permitting a multibillion-dollar class-action lawsuit against the company to continue, stemming from the Cambridge Analytica privacy issues.
In the cryptocurrency realm, Bitcoin is trading around $98,000, as reported by CoinDesk. It has seen a significant rise this year, having more than doubled in value, recently surpassing the $99,000 mark for the first time last Thursday.