- Asian stocks mostly declined in thin holiday trading, with South Korea and Australia leading losses.
- U.S. stock futures rose after President Trump’s comments eased trade war concerns with China.
- Major U.S. ETFs dropped sharply last week, with the S&P 500 ETF Trust down 2.7% and Invesco QQQ Trust off 3.5%.
- Oil and Gold futures rebounded in early Asian trading, while the U.S. dollar and Treasury yields held steady.
- Kospi slipped 2.1%, S&P/ASX 200 lost 0.5%, and Nikkei futures rose in Japan‘s holiday-affected session.
Asian equities fell in mostly light trading on Monday, with major declines in South Korea and Australia, while Japanese markets were closed for a holiday. Nikkei futures traded higher, reflecting some optimism despite the closure.
U.S. stock futures advanced late Sunday, suggesting a stronger start to the week. This rebound followed a significant sell-off last Friday, which was triggered by concerns over U.S.-China trade relations. President Donald Trump posted on social media that trade relations with China “will all be fine,” helping calm investor fears after earlier volatility.
As of 9:30 p.m. ET on Sunday, S&P 500 futures gained 0.3%, Nasdaq 100 futures increased 1.8%, Dow futures were up 0.8%, and Russell 2000 futures rose 1.6%. Analysts reported the prior week’s decline, which erased $2 trillion from stock markets according to a CNBC report, was more characteristic of a typical market correction than a longer-term downturn.
Larry Tentarelli of Blue Chip Daily Trend Report stated on X that market drops of 3% to 5% are common and may often lead to the next rally, emphasizing the distinction between “short-term resets and longer-term trend reversals.” Meanwhile, Ryan Detrick of Carson Group pointed out the current bull market remains well below the average gains of prior cycles.
Over the weekend, U.S. Vice President J.D. Vance urged China to pursue a reasonable path in bilateral talks. President Trump signaled openness in dealing with Chinese President Xi Jinping, saying a prolonged trade war would hurt China more than the U.S. These comments followed an announced 100% tariff on Chinese goods and new U.S. export controls set to begin November 1, introduced in response to China’s restrictions on rare-earth exports.
Earnings reports are scheduled for Monday from Fastenal Company (before the market open) and Rocky Mountain Chocolate Factory (after the close). Commodities saw gains in early Asian trading: WTI crude oil climbed 1.0% to $59.51 per barrel, Brent crude rose 1.0% to $63.34, and gold jumped 1.7% to $4,069 per ounce.
The yield on the 10-year U.S. Treasury note stayed near 4.03%, and the U.S. dollar index rose to 99.0. For Asian markets, MSCI’s broadest Asia-Pacific index outside Japan fell 0.6%, with South Korea’s Kospi down 2.1%, Australia’s S&P/ASX 200 off 0.5%, and Nikkei futures up 1.3% but still below the prior cash close of 48,088.
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