Electronic Stock Board showing in Japan’s Nikkei index at a securities firm, Monday, Dec 09, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
BANGKOK — Stock markets in Asia mostly declined on Monday, with South Korea's benchmark index falling 2.3%, following a strong week in U.S. markets, where stocks reached new highs.
The overthrow of Syrian President Bashar Assad, who fled to Moscow after rebels ended his family's 50-year rule, had an uncertain impact on global markets. Oil prices showed mixed movements, while U.S. futures also edged lower.
Tensions remained high in South Korea, where local reports indicated that authorities were considering imposing an overseas travel ban on President Yoon Suk Yeol. His position became uncertain after declaring martial law last week amid a budget dispute, only to reverse the decision hours later.
In South Korea, the Kospi index dropped 2.3% to 2,372.02. Chinese markets also experienced losses, with Hong Kong’s Hang Seng index falling 0.6% to 19,753.26, and the Shanghai Composite dropping 0.4% to 3,390.62. Investors are awaiting an important economic planning meeting later this week, which could bring new stimulus measures for China, the world’s second-largest economy.
In Japan, the Nikkei 225 index rose slightly by 0.2% to 39,161.10, boosted by a stronger yen against the U.S. dollar. The dollar was trading at 149.94 yen, down from 150.07 yen earlier. There are growing expectations that Japan’s central bank might raise interest rates to support the yen and control inflation.
In Australia, the S&P/ASX 200 fell 0.2% to 8,400.80. India’s Sensex dipped 0.1%, while Taiwan’s Taiex gained 0.4%. The SET index in Bangkok dropped 0.3%.
On Friday, U.S. stocks closed at record highs, bolstered by data suggesting that the job market remains strong enough to sustain economic growth without causing immediate inflation concerns. The S&P 500 gained 0.2%, closing at a new all-time high of 6,090.27, marking its third consecutive winning week. The Dow Jones Industrial Average fell 0.3% to 44,642.52, while the Nasdaq composite rose 0.8% to set a new record at 19,859.77.
The U.S. jobs report strengthened expectations that the Federal Reserve might reduce interest rates again at its next meeting in two weeks. The report showed that more jobs were added than expected, although the unemployment rate ticked up slightly from 4.1% to 4.2%.
The Fed has been cutting interest rates from a two-decade high since September to support the slowing job market and help bring inflation down to its target of 2%. While lower interest rates can boost the economy, they also have the potential to reignite inflation.
So far this year, the S&P 500 has reached a record high 57 times.
While there is hope that the robust job market can sustain consumer spending and prevent a recession, retailers have given mixed outlooks for the holiday shopping season. Target issued a pessimistic forecast, while Walmart was more optimistic.
A recent survey by the University of Michigan showed that consumer sentiment in the U.S. has improved more than expected, with an increase in buying ahead of potential price hikes due to higher tariffs that President-elect Donald Trump has threatened.
In the tech sector, Hewlett Packard Enterprise saw a significant 10.6% rise after reporting stronger-than-expected earnings. Tech stocks have been some of the top performers, as companies like Salesforce are benefiting from the growth of artificial intelligence.
Bitcoin briefly surpassed $103,000, though it was trading near $99,600 on Friday.
In commodities, U.S. benchmark crude oil rose 31 cents to $67.51 per barrel, while Brent crude, the international benchmark, dropped 7 cents to $71.05 per barrel. The euro weakened slightly against the dollar, falling to $1.0537 from $1.0561.
