BENGALURU: Most Asian stock markets rose on Monday on growing optimism that the US government may reopen soon, with Indonesia notching a fresh high, while South Korea and Taiwan were a few pips below their lifetime highs.
The MSCI index of emerging Asia equities and a broader index tracking Asian equities outside Japan
jumped more than 1 percent each. Another gauge of global EM equities advanced more than 1 percent to a two-week high.
The US Senate on Sunday prepared to vote on a measure combining short-term funding through January 2026 with three full-year spending bills, aiming to end the 40-day government shutdown.
“While the reopening restores critical services and eases economic uncertainty, the rebate plan remains contingent on congressional approval and sufficient tariff revenue, leaving its timing and feasibility still in question,” said Tony Sycamore, market analyst at IG Australia.
Indonesian shares advanced as much as 1 percent to a record high. Equities in Taiwan rose as much as 1.2 percent, trading shy of a record peak hit on November 4, while South Korean stocks, one of the top performers this year, jumped as much as 3.5 percent, almost recouping the last week’s losses.
The South Korean won also advanced the most among Asian currencies on Monday, rising 0.6 percent.
South Korean shares emerged as a major beneficiary of the global artificial intelligence rally late last month, driven by surging demand for high-performance computing. The rally later ran out of gas as doubts emerged over its sustainability and record valuations.
“While some of the headwinds that weighed on markets last week have now eased, this is unlikely to relieve investor concerns about AI spending versus payback, which intensified last week,” Sycamore said.
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