Written by Lei Wee
SINGAPORE (Reuters) – Asian stocks bounced back and forth in positive territory on Monday, weighed down by falling Chinese stocks, but Bitcoin hit a three-month high as “Trump trading” continued to rise.
Gold has once again hit record highs in the wake of the Middle East conflict and the extremely close US presidential election, with the yellow metal expected to remain popular amid global uncertainty.
Optimism over the Chinese government's package of stimulus measures first announced in late September has turned to caution in recent days as investors focus on details of further fiscal support from policymakers. are.
China lowered its benchmark lending rate on Monday, a move that was expected.
Hong Kong stocks were last down 0.6%, with China's blue-chip index swinging between declines and gains. Last time, the index was up 0.4%, and the Shanghai Composite Index was up 0.36%.
That capped gains in MSCI's broadest index of Asia-Pacific stocks outside Japan, ultimately ending with a modest 0.11% gain, but U.S. stocks posted their sixth consecutive week of gains on Friday. Sentiment declined as a result.
Japan's Nikkei average rose 0.34%.
Further details about China's stimulus plans may take some time to emerge.
“We may have to wait until the end of October or early November for concrete plans at the National People's Congress Standing Committee,” said Qiaoping Chu, global market strategist at JPMorgan Asset Management in Shanghai. said.
us elections
With about two weeks left until the November 5th US election, bets on Donald Trump's victory are increasing in some financial instruments.
The Republican candidates' tariff, tax and immigration policies are seen as inflationary, which is bad for bonds and good for the dollar. He is also seen to have a more favorable attitude towards cryptocurrencies.
“Currently, Mr. Trump appears to have an advantage in key battleground states, suggesting that he is well-positioned to take back the White House, and the market has seen higher stock prices and higher prices over the last week. I think we're starting to factor that in with the rise in yields and the obvious strength of the US dollar.''It's been very strong, with Bitcoin on track for a 10% gain over the past week,'' said IG market analyst Tony. Sycamore said.
Bitcoin hit its highest since July at $69,487 in early trading, before closing up 0.5% at $69,100. The world's largest cryptocurrency rose 9.6% last week and is up more than 8% in the month so far.
“Bitcoin looks pretty good here, and I think it could continue to rise,” Sycamore said.
The dollar remained not far from its two-month high against a basket of currencies on Monday, with the dollar index sitting at 103.46.
The pound fell 0.02% to $1.3045, and the euro fell 0.01% to $1.0865.
In the bond market, the benchmark 10-year Treasury yield rose 1 basis point to 4.0907%, while the 2-year yield was last at 3.9568%. [US/]
Spot gold extended its gains to hit an all-time high of $2,727.39 an ounce after rising more than 2% last week.
“Given Trump’s aggressive stance on trade and his willingness to weaponize the dollar, this is the most significant deal Trump has ever made,” said Arun Say, senior multi-asset strategist at Pictet Asset Management. The obvious one is gold. The demand for diversification is well supported among emerging central banks.” .
Oil prices rose on Monday, continuing a steep decline from last week. [O/R]
Brent crude oil futures recently rose 0.4% to $73.36 a barrel, while U.S. crude oil futures rose 0.43% to $69.52 a barrel.
(Reporting by Rae Wee; Editing by Edwina Gibbs)
