BANGKOK (AP) - Asian shares were predominantly higher on Monday, buoyed by gains from Amazon that contributed to a successful finish for the U.S. stock market at the end of another winning week and month. U.S. futures showed positive momentum alongside rising oil prices, while Japan's markets remained closed for a holiday.
In South Korea, the Kospi index rose by 2.6%, reaching 4,212.20, with Samsung Electronics, the largest company in the country, witnessing a significant jump of 3.4%. Conversely, Chinese markets behaved more tentatively; Hong Kong's Hang Seng managed a modest increase of 0.4%, closing at 26,017.76.
A recent private sector measure of factory activity in China, the RatingDog China General Manufacturing PMI, indicated a slowdown, showing a decrease to 50.6 in October from 51.2 in September. This figure is based on a scale from zero to 100, where 50 indicates no change in activity. Similarly, the official PMI reading released by the National Bureau of Statistics revealed a decline in factory activity, dropping to 49 in October from 49.8 in the previous month. The Shanghai Composite index saw a slight increase, edging up by 0.1% to reach 3,958.21, while Taiwan's benchmark also experienced a slight gain of 0.1%.
There was no notable reaction to U.S. President Donald Trump’s claims regarding Chinese President Xi Jinping's assurance that there would be no actions taken against Taiwan, a self-governing island that Beijing claims as its territory. The contentious issue of Taiwan was not a focal point during Trump's recent discussions with Xi, which were predominantly centered around U.S.–China trade tensions. However, in an interview with '60 Minutes' that aired on Sunday, Trump expressed confidence that China would refrain from any actions against Taiwan during his presidency.
Early indicators for the Dow Jones Industrial Average showed an uptick of 0.2%, while the S&P 500 futures noted an increase of 0.3%. On the previous Friday, Amazon significantly lifted market sentiments, gaining 9.6% after reporting a far larger profit than analysts had anticipated. The S&P 500 saw an increase of 0.3%, closing closer to its all-time high, which was achieved earlier in the week. The index ended the day at 6,840.20, marking a third consecutive week of gains and a sixth consecutive month of positive performance, thereby achieving its longest monthly winning streak since 2021.
The Dow industrials recorded a minor gain of 0.1% to reach 47,562.87, while the Nasdaq composite rose by 0.6% to 23,724.96. Amazon’s substantial market capitalization of approximately $2.4 trillion resulted in its stock fluctuations having a pronounced impact on the S&P 500; without Amazon, the index would have experienced a decline for the trading day.
Apple also released a better-than-expected profit report; however, its impact on the market was less significant, as the stock dipped by 0.4%. CEO Tim Cook highlighted strong revenue from both the iPhone lineup and services, including the app store. Companies are under pressure to demonstrate substantial profit growth to validate the significant increases in their stock prices since April and to alleviate concerns that the U.S. stock market has become excessively valued.
On a separate note, earlier in the week, the S&P 500 had dropped by 1% as investors expressed unease over large expenditure increases planned by companies such as Meta Platforms and Microsoft, which are part of a broader investment trend in artificial intelligence technology. Financial markets exhibited skepticism regarding the sustainability of President Trump’s trade truce with China and its potential to alleviate ongoing tensions.
In other market activities early Monday, U.S. benchmark crude oil increased by 23 cents, trading at $61.21 per barrel, while Brent crude, the international standard, added 26 cents to reach $65.03 per barrel. Additionally, the U.S. dollar climbed against the Japanese yen, now valued at 154.06 compared to 153.48 previously, while the euro slightly retreated to $1.1532 from $1.1537.
