Most Asian stocks rise as investor optimism endures

Asian stocks mostly advanced on Monday, buoyed by lingering optimism following a strong end to October and another AI-driven rally on Wall Street.

Investors entered the new week in positive spirits after easing tensions between China and the United States, a Federal Reserve interest rate cut, and solid earnings from major firms such as Amazon.

Market participants are now awaiting key US jobs data due later this week, although the ongoing government shutdown — with no resolution yet between Democrats and Republicans — could delay its release.

So far, the shutdown has had little impact on markets, but analysts warn that could change if it drags on.

“The shutdown could soon feasibly become the longest on record, though markets remain largely unperturbed,” said Chris Weston of Pepperstone. “However, public frustration is expected to build this week as food benefits for lower-income families are paused, domestic travel disruptions rise, and new enrollments under the Affordable Care Act face delays.”

Global equities have rallied sharply since April’s slump triggered by US President Donald Trump’s tariff blitz, with Wall Street’s major indexes and several others setting record highs. The gains have been driven by expectations — and now confirmation — of Fed rate cuts, along with an ongoing investment rush into artificial intelligence.

Nvidia’s recent surge made it the world’s first $5 trillion company, underscoring the momentum behind the tech rally.

Mirroring Wall Street’s upbeat tone on Friday, most Asian markets opened higher. Hong Kong, Singapore, Wellington, and Taipei all gained, while Seoul jumped more than one percent to a record high, lifted by improved relations between South Korea and China.

In contrast, Shanghai, Sydney, and Manila slipped, while Tokyo remained closed for a public holiday.

Investors are also watching developments following last week’s meeting between Trump and Chinese President Xi Jinping, where the two leaders agreed to ease China’s rare earth export restrictions and reduce US tariffs.

Still, US Treasury Secretary Scott Bessent cautioned on Sunday that Washington could reimpose tariffs if Beijing restricts rare earth exports again.

Oil prices edged higher after the OPEC+ alliance confirmed plans to raise production in December, while pausing output increases during the first quarter of 2026.

Meanwhile, gold prices hovered near $4,000 per ounce after China ended a tax incentive for gold purchases. The metal has fallen sharply from its October 20 record above $4,381, following profit-taking after a 60 percent surge since the start of the year.