Futures trading indicated a recovery was likely for the major U.S. averages on Monday as well as risk-on sentiment was restored in major markets, at least for now.
Japanese stocks started higher amid gains from so-called domestic demand stocks after the holiday weekend. The Nikkei NIK, +0.76% rose 0.7%, with beverage maker Kirin 2503, +1.47% , retailer FamilyMart 8028, +6.66% and furniture retailer Nitori 9843, +2.91% showing strong gains. But energy and financial stocks fell sharply after end-of-week drops in crude LCOF9, +1.85% and Treasury yields. Oil explorer Inpex 1605, -2.44% was down 2.4% and Mitsubishi UFJ 8306, -1.04% was off another 1.5%.
Hong Kong stocks were solidly higher following Friday’s selling. Despite the weakness in energy following the oil slump, the Hang Seng Index HSI, +1.73% was up 1.7% amid gains in financial and property stocks. They’re up some 1%, along with internet heavyweight Tencent 0700, +2.34% . Major Chinese oil giants were down initially then recovered, with Cnooc 0883, +0.95% closing up 1%.
Equities benchmarks in mainland China were muted, with the Shanghai Composite SHCOMP, -0.14% up early but ending down 0.1% and the smaller-cap Shenzhen Composite 399106, -0.32% down 0.3% after spending time in both positive and negative territory.
After a four-day losing streak, Taiwan’s benchmark Y9999, +1.01% jumped 1% as the tech-heavy market’s heavyweights rose following recent global weakness for the sector. Taiwan Semiconductor 2330, +2.06% and Largan Precision 3008, +4.23% gained. South Korea’s Kospi SEU, +1.24% rose 1.2% after four straight drops of its own, with Samsung 005930, +0.47% up slightly. Singapore’s Strait Times Index STI, +1.34% was up more than 1%.
Australia’s ASX 200 XJO, -0.78% lagged the rest of the region, down 0.8%. Energy and mining stocks were weak, with Oil Search OSH, -4.03% and Rio Tinto RIO, -3.56% each down around 4%. New Zealand’s benchmark NZ50GR, -0.45% was down slightly.