Shares in Asia started the week on a positive note, led by strong gains in China, as monthly surveys showed improved manufacturing conditions.
Both official and private factory surveys indicated robust new and export orders, possibly driven by U.S. importers seeking to avoid potential tariff hikes from U.S. President-elect Donald Trump.
Trump has threatened 100% tariffs on BRIC nations (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE) if they create a new currency that could challenge the U.S. dollar.
“Asia’s markets are riding a wave of optimism, catching a significant tailwind from Wall Street’s record-setting day on Friday and buoyed further by emerging signs that China’s economic funk might be easing,” Stephen Innes of SPI Asset Management said.
Investors also anticipate further actions by China to support its economy ahead of Trump’s inauguration next month. This optimism translated into positive market movements across the region.
Hong Kong’s Hang Seng rose 0.2% to 19,468.27 points, while the Shanghai Composite gained 1%, and Taiwan’s Taiex surged 2.4%. Tokyo’s Nikkei 225 also joined the upward trend, rising 0.7% to 38,482.47.
In the Philippines, the PSEi climbed 1.95%, closing at 6,742.89 points. All sectors ended in the green, with Services up 3.53% and Holding Firms rising 3.33%.
South Korea’s Kospi added 0.4%, and Australia’s S&P/ASX 200 gained 0.1%. Thailand’s SET index remained almost unchanged.
Meanwhile, in the business sector, Nissan Motor Corporation’s shares fell 1% as reports indicated the company’s CFO, Stephen Ma, plans to step down amid job cuts and reduced production due to declining sales in China and other markets.
Early Monday, U.S. crude oil rose 37 cents to $68.37 per barrel, while Brent crude gained 40 cents to $72.24. Bitcoin traded at $96,911.32, approaching the $100,000 mark.
The U.S. dollar strengthened to 150.75 yen from 149.70, while the euro slipped to $1.0519 from $1.0589.