BY COMFORT OGBONNA
Stocks advanced in Asia on Monday after U.S. markets posted their strongest rally since November’s election, and China reported stronger-than-expected factory data.
Later in the day, Chinese officials were scheduled to brief reporters on Beijing’s efforts to encourage consumer spending. Economists argue that increased consumer spending is necessary to lift the economy out of its slump, though many advocate for broader, more fundamental reforms to boost confidence and purchasing power.
Hong Kong’s Hang Seng surged 1.3% to 24,276.64, while the Shanghai Composite Index rose 0.6% to 3,429.30.
China’s industrial output grew nearly 6% in the first two months of the year compared to the same period last year, and retail sales increased by 4%, the government reported Monday. However, the property market remained weak, with declining home prices and a nearly 10% drop in real estate investment from a year earlier.
In Tokyo, the Nikkei 225 gained 1.3% to 37,539.36, while South Korea’s Kospi jumped 1.7% to 2,608.68.
Australia’s S&P/ASX 200 added 0.6% to 7,838.20, and Taiwan’s Taiex rose 0.9%. However, Bangkok’s SET Index fell 0.7%, bucking the overall trend.
On Friday, Wall Street rebounded sharply, though not enough to prevent the U.S. market from recording its fourth consecutive losing week—the longest such streak since August.
The S&P 500 climbed 2.1% to 5,638.94, a day after closing more than 10% below its record high, marking its first official “correction” since 2023.
The U.S. stock market has been on a steep decline since reaching a record high less than a month ago. The last time the index rose this sharply was after Donald Trump’s election, when Wall Street focused on the potential benefits of his return to the White House.
The Dow Jones Industrial Average gained 1.7% to 41,488.19, while the Nasdaq Composite surged 2.6% to 17,754.09.
Ulta Beauty soared 13.7% after reporting stronger-than-expected quarterly profits.
Big Tech and artificial intelligence-related stocks also contributed to the market’s rebound. These stocks had been under pressure amid concerns that their prices had risen too high during the AI investment frenzy. Nvidia climbed 5.3%, reducing its year-to-date loss to below 10%. Apple gained 1.8%, paring its losses for the week, which at one point had been on track to be its worst since the 2020 COVID-19 crash.
Investor sentiment was also bolstered by the Senate’s efforts to prevent a potential partial U.S. government shutdown.
However, significant uncertainty remains due to Trump’s escalating trade war. The key question is how much economic strain he is willing to impose through tariffs and other policies in pursuit of his vision for the country. Trump has emphasized his desire to bring manufacturing jobs back to the U.S., reduce the federal workforce, and implement other fundamental economic changes.
While stock markets may be nearing the end of their adjustment to account for tariffs set to take effect in April, concerns persist about how federal spending cuts will impact the economy.
U.S. households and businesses have already reported declining confidence due to uncertainty surrounding Trump’s shifting tariff policies and other economic measures. This has fueled fears of reduced consumer spending, which could weaken economic growth.
Consumer sentiment appears to be worsening, according to a preliminary University of Michigan survey released Friday. The index declined for the third consecutive month, driven primarily by concerns about the future rather than dissatisfaction with current conditions. Despite these concerns, the job market and overall economy remain relatively strong.
In early trading Monday, U.S. benchmark crude oil rose 48 cents to $67.66 per barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international benchmark, gained 49 cents to $71.07 per barrel.
The U.S. dollar strengthened to 148.93 Japanese yen from 148.81 yen. The euro edged down to $1.0880 from $1.0882.
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