Asia Session: What we expect from the Asian session on Monday

Positive Start Expected for Asian Session on Monday Amid Mixed Regional Outlook

A positive start is anticipated for Monday’s Asian trading session, with regional markets likely to continue recovering from recent declines. Despite geopolitical risks and slowing growth in China, indices in Taiwan and South Korea will remain in focus, driven by strong performances in the tech sector. TSMC will be a key company to watch, likely continuing to lead growth in the region.

In Australia, indices are expected to maintain their positive trend, while markets in Japan and India also have the potential to post modest gains. However, continued volatility is expected in China and Hong Kong, as the sell-off in internet companies like Baidu may exert pressure on these markets.

Key Developments to Watch

A critical event will be the earnings report from China’s Meituan, which is expected to provide additional insights into the country’s economic situation. Meanwhile, positive news about China’s rare-earth elements sector and government measures to stimulate trade could offer support to these companies’ stocks.

Broader Market Sensitivities

Markets will remain sensitive to political developments in the U.S., particularly regarding inflation and economic forecasts in the context of the upcoming holiday season.