Source: AFP
Japan’s Nikkei 225 stock index closed above 40,000 for the first time on Monday, while oil prices fell after major crude producers agreed to cut output for a little longer as expected.
Europe’s main stock markets fell around midday, with London down nearly half a percent in anticipation of the UK’s pre-election budget on Wednesday.
The European Central Bank was expected on Thursday to freeze eurozone interest rates as sticky inflation blocks a cut. The week ends with key US jobs data on Friday.
Tokyo is enjoying a record high thanks to Wall Street rallies, strong corporate earnings and optimism about artificial intelligence, analysts said.
Oil was in the spotlight, a day after Russia, Saudi Arabia and several other OPEC+ members announced an extension of oil production cuts first announced in 2023.
The extension to mid-2024 is part of an agreement among oil producers to bolster prices after economic uncertainty.
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The ECB will keep interest rates on hold again, pending clearer signs on inflation
Elsewhere in stock markets, Wall Street’s S&P 500 and tech-rich Nasdaq closed Friday at all-time highs on continued momentum for AI-related stocks, especially chipmaker Nvidia, which finished with a over $2 trillion for the first time.
Taiwanese chip giant TSMC climbed to a record high on Monday, gaining 5.2 percent in a global rally in semiconductor stocks and helping Taipei’s Taiex index add nearly two percent.
The steady performance of global markets provides “favorable trade winds for Asian markets as the new week begins,” noted SPI Asset Management’s Stephen Innes.
While the Federal Reserve is now expected to start cutting interest rates later rather than earlier this year due to recent warmer-than-expected inflation data, markets have been boosted by spectacular earnings results from major tech companies in recent weeks.
Investors will also look this week to the release of US jobs data and Fed chief Jerome Powell’s testimony to Congress.
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Asian shares rise on US gains ahead of key China policy meeting
“We don’t expect the chair to move too far from the Fed’s recent messages – officials are in a wait-and-see mode as there is still a lot of uncertainty in the data,” said John Briggs, global head of strategy at NatWest Markets.
Hong Kong’s stock market ended flat on Monday and Shanghai closed higher ahead of the start of China’s annual legislative session, with officials expressing concern over the country’s struggling economy and youth unemployment as they prepare to unveil policies for next year.
While analysts called for stronger interventions from Beijing to stimulate the economy, Innes said more measured moves were possible, as a “big bang” stimulus could pose long-term risks to stability.
Keys around 1145 GMT
London – FTSE 100: Down 0.5% to 7,643.21 points
Paris – CAC 40: Down 0.1% to 7,929.63 points
Frankfurt – DAX: Down 0.2% to 17,705.57 points
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![](https://images.yen.com.gh/images/5a49cabdf0240a7c.jpg?impolicy=cropped-image&imwidth=256)
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Asian markets mostly rise after US gains
EURO STOXX 50: UP 0.1 percent at 4,900.30
Tokyo – Nikkei 225: UP 0.5 percent at 40,109.23 (close)
Hong Kong – Hang Seng: FLAT at 16,595.97 (close)
Shanghai – Composite: UP 0.4 percent to 3,039.31 (close)
New York – Dow: UP 0.2 percent at 39,087.38 (close)
EUR/USD: UP at $1.0857 from $1.0841 on Friday
Dollar/yen: UP to 150.44 yen from 150.11 yen
GBP/USD: UP at $1.2680 from $1.2656
Euro/pound: DOWN to 85.63 pence from 85.65 pence
North Sea Brent crude: DOWN 0.4% at $83.24 a barrel
West Texas Intermediate: DOWN 0.4% to $79.63 a barrel
Source: AFP