HONG KONG (AP) — Asia’s stock market saw a slight decline on Monday as trading remained subdued ahead of U.S. President Joe Biden’s meeting with Chinese leader Xi Jinping later in the week.
Oil prices continued on a three-week losing streak due to increased crude shipments from Russia and the U.S. and the gradual unwinding of the risk premium attributed to the ongoing conflict between Israel and Hamas. Meanwhile, U.S. futures were also down.
Stocks in Hong Kong and South Korea made modest gains while those in Japan, Shanghai, and Australia experienced negligible declines.
The upcoming meeting between Biden and Xi, set to take place in California, marks the first direct encounter between the leaders of the world’s two largest economies in a year. Both leaders aim to restore stability in their relationship, which has been marred by disputes over export controls, Taiwan, and international conflicts.
On Monday, the Hang Seng in Hong Kong increased by 0.3% to 17,246.02, while the Shanghai Composite index remained largely unchanged. Meanwhile, Alibaba Group Holding and JD.com reported a surge in sales during this year’s Singles’ Day shopping festival but did not disclose exact revenue figures.
In other trading, Tokyo’s Nikkei 225 index fell by 0.1% to 32,537.50, and Australia’s S&P/ASX 200 dropped by 0.4% to 6,948.80. The Kospi in South Korea gained 0.1% to 2,412.40.
Back in the U.S., Wall Street saw a significant surge on Friday, building on its strong performance throughout November. The S&P 500, Dow, and Nasdaq all experienced notable gains, attributed in large part to the strength of big tech stocks.
FactSet reports that this earnings season is shaping up to be better than anticipated, with the potential for the first growth in earnings per share for S&P 500 companies in a year. Notable winners included Hologic, which jumped 7.3% after reporting robust quarterly profits, and Doximity, which also exceeded profit expectations.
Despite this positive sentiment, there are concerns over the potential impact of high interest rates and slowing economic growth. The ongoing uncertainty around a potential interest rate hike by the U.S. Federal Reserve is contributing to market volatility.
As investors shift their focus away from near-term earnings, the outlook for the rest of the year remains uncertain. It is being closely monitored to determine the market trajectory.
The week ahead also carries the anticipation of the Federal Reserve’s next meeting, with expectations for a rate hike fluctuating between traders.
In the oil market, prices continue to fluctuate, driven by concerns about supply and demand dynamics. Key global benchmarks saw declines, further adding to market volatility.
The currency market also saw fluctuations, with the dollar gaining against the Japanese yen.
