Asia Session: What We Expect from the Asian Session on Monday

During the Asian trading session on Monday, markets are expected to move in the context of both domestic and international economic factors. After the strong growth of technology stocks like TSMC, Xiaomi, and SK Hynix, which helped boost regional indices, investors will be cautious regarding news about the U.S. economy and the upcoming inauguration of Donald Trump. Expectations for interest rates and the dollar are likely to set the main tone for assets in the first quarter of 2025.

While Asian stocks have generally shown recovery, stocks in mainland China are expected to remain under pressure, with weak domestic consumption and Trump’s upcoming tariffs continuing to impact them. Special attention should be given to Chinese stocks, which are expected to remain volatile. Stocks of companies related to rare-earth elements could see additional growth after China announced intentions to limit the export of parts for batteries and mineral technologies.

Furthermore, artificial intelligence technologies will remain in the spotlight, with stocks of Chinese AI glasses manufacturers and new wearable technologies likely to see increased interest. At the same time, gold prices and interest in gold mining companies will remain on investors’ radar. Investors should focus on high dividend yield stocks, especially in the China region.

Stocks of Korean companies linked to electric vehicles, such as Ecopro, are likely to continue gaining, especially after news of tax breaks in the U.S. for Hyundai and Kia models. It will also be important to see what steps the Chinese government will take, with increased attention expected to be placed on the bond market and major infrastructure projects.