Asian stock markets and U.S. equity futures began the week on a high note following last week’s steep sell-off in technology stocks. Expectations of measures to bolster capital markets in China, coupled with a decline in oil prices, helped to balance risk appetite among investors.
The recovery came after heavy losses on Wall Street last Friday, when the Nasdaq 100 Index plummeted by 3.5%, marking its worst session since June, while the Philadelphia Semiconductor Index fell by 7.2%.
On Monday, futures for the S&P 500 and Nasdaq 100 rose by 0.5%. European futures also gained, alongside a 0.1% increase in the MSCI Asia Pacific Index. Gains in South Korea and Hong Kong offset losses in the Australian stock market.
Chinese Market Awaits Supportive Interventions
Chinese stocks stood out positively following reports that financial regulators plan to meet with banks and securities firms on Monday to discuss measures aimed at supporting the capital market.
This anticipated meeting indicates a renewed effort by authorities to curb market declines, with potential supportive actions significantly motivating purchases of Chinese equities.
Oil Drops, While Bitcoin and Gold Rise
Brent crude oil prices dropped by 3%, reaching $109.87 per barrel. The decline was driven by reports that U.S. President Donald Trump is inclined to allow more time for diplomacy with Iran, delaying military actions until after Tuesday’s midterm elections.
The expectation of a temporary de-escalation in tensions supported risk appetite, and the reduction in oil prices relieved overall market pressures.
Bitcoin extended its rise for the third consecutive day following a significant cyberattack on Binance last week, which had triggered a sell-off. Meanwhile, gold rose by 0.8% to reach $3,906 per ounce, recovering from its lowest closing level in over a year recorded on Friday.
Initial market reactions suggest eased pressures following the sharp sell-off in technology stocks. However, the modest 0.1% rise in Asia and persistent losses in Australia highlight that the recovery is not uniformly strong across the region.
