Most Asian markets rose on Monday, mirroring gains on Wall Street after U.S. inflation figures aligned with expectations and eased concerns about President Donald Trump’s latest tariff measures. The upbeat mood followed the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) index, which rose to 2.7 percent in August from 2.6 percent in July. Although the reading remains above the Fed’s 2 percent target, policymakers are concentrating on supporting the labor market after a series of weak jobs reports. The Fed’s recent interest‑rate cut—the first since December—was driven by a closely watched outlook that suggested two more cuts could occur before January. All eyes now turn to the key non‑farm payrolls (NFP) report due on Friday, even as worries grow that it may be delayed by a potential government shutdown. A funding deadline is set for Tuesday, with congressional leaders scheduled to meet President Trump to resolve the impasse. Democratic House leader Hakeem Jeffries expressed cautious optimism about reaching a deal before the cutoff, and Senate leader Chuck Schumer echoed that sentiment, noting any breakthrough would depend on Trump’s Republicans. Economists at Bank of America warned that the longer the standoff lasts, the more painful it will be for the world’s largest economy.
Despite these concerns, investors remained upbeat, building on Wall Street’s gains. Hong Kong and Seoul led the rally, each rising over 1 percent, while Shanghai, Sydney, Singapore, Wellington, Manila and Jakarta also posted advances. Tokyo slipped, although Sony’s finance arm surged more than 30 percent on its debut after being spun off by the tech giant. Oil prices fell on speculation that OPEC+ will increase output, raising fears of a glut. The decline followed last week’s rally, which had been fueled by mounting NATO‑Russia tensions and the prospect of fresh sanctions on Moscow.
Key figures around 02:30 GMT showed the Tokyo Nikkei 225 down 1.0 percent, the Hong Kong Hang Seng Index up 1.5 percent, and the Shanghai Composite up 0.1 percent. The euro rose against the dollar, the pound also gained ground, the dollar slipped against the yen, and West Texas Intermediate crude fell 0.8 percent to $65.19 per barrel. The positive sentiment in most Asian markets reflects cautious optimism in the global economy, despite ongoing trade‑tension worries and the looming U.S. government shutdown. Investors will be closely watching developments in Washington and their potential impact on the world economy.
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