BANGKOK — Asian stock markets showed positive movement early Monday, accompanied by a notable spike in bitcoin, which reached an all-time high as the country approaches the inauguration of President-elect Donald Trump.
U.S. financial markets are closed today in observance of a holiday.
The price of bitcoin soared to $109,134 early Monday, rising from $99,563, as reported by CoinDesk. Since Trump’s election, cryptocurrencies have significantly appreciated, as investors anticipate favorable conditions under his administration.
European indices also experienced gains in early trading. The UK’s FTSE 100 increased by 0.1% to 8,515.80, and the CAC 40 in Paris rose by 0.2% to 7,729.06. Meanwhile, Germany’s DAX remained largely stable, showing negligible change at 20,902.00.
Futures for the S&P 500 and Dow Jones Industrial Average showed a modest increase of 0.1%. Hong Kong’s Hang Seng Index surged 1.8% to 19,925.81, buoyed by China’s central bank maintaining its key lending rates. The Shanghai Composite index saw a slight rise, advancing 0.1% to 3,244.38.
In a recent development, a Hong Kong court extended the timeline for distressed property developer Country Garden to negotiate with creditors, pushing the deadline to the following month. This move signals a gradual recovery from the lingering crisis affecting China’s real estate market.
Market sentiment was further bolstered by optimistic statements from officials in both the U.S. and China leading up to Trump’s inauguration later in the day. A commitment from both nations to enhance their relations helped ease fears over escalating trade disputes, especially as businesses prepare for potential tariff increases on Chinese goods entering the United States.
In the Japanese market, the Nikkei 225 index climbed 1.2% to 38,902.50. The value of the dollar fell slightly against the yen, now at 156.17 yen compared to 156.31 yen previously. There are growing expectations that the Bank of Japan might consider raising interest rates during an upcoming monetary policy meeting, which could further strengthen the yen.
The euro experienced a modest increase, advancing from $1.0281 to $1.0309.
In South Korea, the Kospi dropped 0.1% to 2,520.05, while Australia’s S&P/ASX 200 appreciated by 0.5% to 8,347.40. Taiwan’s Taiex gained 0.5%, and India’s Sensex rose by 0.7%, with Bangkok’s SET adding 0.1%.
In commodity trading early Monday, U.S. benchmark crude oil fell by 19 cents, settling at $77.20 a barrel, whereas Brent crude dropped 23 cents to $80.56 per barrel.
Last Friday, U.S. indices saw significant rises with the S&P 500 increasing by 1%, the Dow up by 0.8%, and the Nasdaq composite soaring 1.5%. SLB led the charge following a report of exceeded profit and revenue projections for the end of 2024, which propelled its stock by 6.1% after announcing an increase in dividends and a $2.3 billion stock buyback plan.
All major tech firms, part of the so-called “Magnificent Seven” — including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla — enjoyed gains as their large market capitalization gives them a significant influence over the S&P 500 and other indexes.
Despite their recent pressure due to concerns over potentially inflated valuations, these stocks have seen renewed optimism. The recent uptick in the U.S. inflation report has fueled speculation that the Federal Reserve may continue to lower interest rates. Such actions could liberalize the economy, enhancing investment prices, although it could also reignite inflation concerns.
Wall Street has exhibited volatility in recent weeks, swaying to the rhythm of economic data that have led traders to adjust their expectations regarding the Federal Reserve’s next steps. Diminished inflation worries have contributed to lowering Treasury yields and lifting stock prices, while increased inflation fears have resulted in the opposite trend.
