Asia-Pacific markets saw a rebound from Friday’s downturn as investors turned their attention to upcoming data releases from China, Japan, and South Korea.
The sell-off on Friday across the region was prompted by Israel’s strike at Iran, leading to a decline in stocks and a surge in safe-haven assets.
China’s decision to maintain its one-year and five-year loan prime rates at 3.45% and 3.95%, respectively, was a notable development on Monday. The five-year LPR is particularly significant as it serves as the benchmark for most property mortgages.
Hong Kong’s Hang Seng index surged almost 2%, while Mainland China’s CSI 300 slipped 0.3%, closing at 3,530.9, making it the only major market to decline on Monday.
Japan’s Nikkei 225 closed 1% higher at 37,438.61, with the broader Topix index experiencing a larger gain of 1.38% to end at 2,662.46.
South Korea’s Kospi also rose by 1.45% to close at 2,629.44, while the small-cap Kosdaq advanced 0.46% to end at 845.82. In Australia, the S&P/ASX 200 began the week positively, closing 1.08% up at 7,649.20.
In the U.S. on Friday, the Nasdaq Composite and S&P 500 extended their losing streak to six sessions, marking their longest downturn since October 2022.
This downward trend was exacerbated by the decline in Nvidia, contributing to market concerns related to geopolitical tensions and persistent inflation.
In contrast, the Dow Jones Industrial Average saw a 0.56% increase, driven by a more than 6% rally in American Express following its earnings report.
