BANGKOK (AP) – Asian shares predominantly rallied on Monday, buoyed by a strong performance from Amazon, which helped the U.S. stock market to close another successful week and month. Despite the positive sentiment in Asia, Japan's markets remained closed for a holiday.
In South Korea, the Kospi index surged by 2.6%, reaching 4,212.20, with major contributions from Samsung Electronics, the country's largest company, which saw its shares jump 3.4%. Meanwhile, the mood in Chinese markets appeared more restrained, with Hong Kong's Hang Seng index up by only 0.4% at 26,017.76.
Indicators from the manufacturing sector in China revealed a slowdown in factory activity. The RatingDog China General Manufacturing PMI dipped to 50.6 in October from 51.2 in September, indicating that growth is easing. Similarly, the official PMI reading published by the National Bureau of Statistics indicated a drop to 49 last month from 49.8 in September, marking levels below the expansion benchmark of 50.
The Shanghai Composite index recorded a slight increase of 0.1% to close at 3,958.21, with Taiwan's benchmark also rising by 0.1%. There was a notable absence of immediate reaction following U.S. President Donald Trump’s remarks claiming that Chinese leader Xi Jinping had assured him no actions would be taken against Taiwan while he was in office.
On the U.S. futures market, the Dow Jones Industrial Average saw an early increase of 0.2%, and the S&P 500 futures rose by 0.3%. A notable driver for the recent gains was Amazon, which reported significantly higher profits than analysts anticipated, leading to a dramatic 9.6% increase in its stock. This performance helped lift the S&P 500 by 0.3%, bringing it closer to its all-time high of 6,840.20, achieved the previous Tuesday. This marked the third consecutive winning week for the index and its longest monthly winning streak since 2021.
In the same trading session, the Dow added 0.1% to close at 47,562.87, while the Nasdaq Composite observed a gain of 0.6%, finishing at 23,724.96. Amazon’s substantial market capital of roughly $2.4 trillion plays a significant role in the S&P 500, making its stock price movements more impactful compared to other companies. Without Amazon’s gains, the S&P 500 would have experienced a decline.
In contrast to Amazon’s performance, another influential stock, Apple, reported better-than-expected earnings but ended the day with a slight dip of 0.4%. CEO Tim Cook highlighted robust revenue from both its iPhones and services, which include the app store, reiterating the ongoing demand for its offerings.
Analysts and investors are increasingly concerned that companies need to generate substantial growth in profits to validate the significant rises in stock prices observed since April. This pressure is compounded by concerns that the U.S. stock market may be overvalued.
The S&P 500 had faced a challenging day prior, slumping 1% as the market reacted to announcements of substantial spending increases by tech giants like Meta Platforms and Microsoft as they invest heavily in artificial intelligence technology. Simultaneously, skepticism lingered regarding Trump’s announcements about a potential trade truce with China, which many investors worried would not resolve ongoing tensions between the two nations.
In other early dealings on Monday, U.S. benchmark crude oil prices rose by 23 cents, reaching $61.21 per barrel, while Brent crude, the international standard, increased by 26 cents to $65.03 per barrel. The U.S. dollar appreciated against the Japanese yen, rising to 154.06 yen from 153.48 yen. In currency exchange, the euro slipped to $1.1532 from $1.1537.
Overall, the markets reflect a complex landscape where strong earnings from major companies drive sentiment, yet underlying economic indicators and geopolitical factors contribute to volatility.
