Asian shares saw gains on Monday, with Chinese stocks rising over 2% following remarks by the finance minister indicating the need for additional stimulus to address the slowing economy. U.S. futures remained stable, while oil prices experienced a decline.
China's finance minister mentioned the government's consideration of further measures to boost the economy, without specifying a major new stimulus plan. Investors and analysts have been anticipating a plan worth up to 2 trillion yuan. Expressions of support from officials typically lead to stock price increases, with state-run entities stepping in to stabilize markets.
The Shanghai Composite index rose by 2.1%, Shenzhen's market gained 3%, and Hong Kong's Hang Seng index dropped by 0.9%. China reported weakened consumer inflation and falling wholesale prices in September, reflecting ongoing weakness in domestic demand prompting government interventions to revive spending.
Despite large-scale Chinese military exercises near Taiwan, markets were largely unaffected. Taiwan's Taiex rose by 0.3%. Tokyo markets were closed for a holiday, while South Korea's Kospi added 1% and Australia's S&P/ASX 200 increased by 0.5%.
Following a strong finish on Wall Street, U.S. stocks reached record highs, driven by robust profits at major banks. The S&P 500 and Dow Jones Industrial Average set new records, with the Nasdaq lagging due to Tesla's decline after unveiling its robotaxi. Wells Fargo and JPMorgan Chase reported stronger profits than expected, boosting the S&P 500.
BlackRock also exceeded profit expectations, managing a record $11.5 trillion in assets. Tesla's unveiling of the 'Cybercab' led to a drop in its stock, benefiting potential rivals Uber Technologies and Lyft.
In the bond market, Treasury yields fluctuated following updates on wholesale inflation and U.S. consumer sentiment. Producer prices rose by 1.8% in September compared to a year earlier, slightly below economists' forecasts.
U.S. benchmark crude oil fell to $74.33 per barrel, while Brent crude dropped to $77.78 per barrel. The dollar strengthened against the Japanese yen and weakened against the euro.
